In recent years, Nagaland has witnessed a growing craze for sandalwood plantation. Unlike tea, rubber, coffee and oil palm, which have at various points received state backing and promotional support, and still do, sandalwood cultivation is largely a private initiative. The plantations are mostly being taken up by well-off individuals who see long term economic potential in the prized tree. While there is nothing inherently wrong in cultivating sandalwood, the emerging trend calls for careful thought and policy clarity.
Sandalwood is not an ordinary crop. In several states across India, its harvest and trade are regulated by the government due to its high value and history of smuggling and illegal trade. The market structure is tightly controlled, and growers often require permits and official oversight to sell their produce. If Nagaland does not establish a clear regulatory and marketing framework, growers who invest today may face uncertainty 15 to 20 years later when their trees mature.
It is evident that Nagaland currently does not have a structured domestic market for either red or white sandalwood. When the time for harvest arrives, cultivators will inevitably depend on buyers from outside the state. Without safeguards, this dependence could place growers at a disadvantage in price negotiations and compliance requirements. The risk is that private enthusiasm today may translate into financial distress tomorrow.
At the same time, the state government is actively promoting agarwood plantation as a viable economic and ecological initiative. A draft Agarwood Policy for Nagaland has reportedly been submitted to the Cabinet for consideration. This reflects an understanding that high value forestry crops require regulatory clarity, market linkage and institutional support.
If agarwood merits a policy framework, it is reasonable to ask whether sandalwood deserves similar attention. A proactive approach now could prevent future complications. Clear guidelines on cultivation, harvest, transit and marketing would protect both growers and the state’s interests. Planning today will determine whether sandalwood becomes a sustainable asset or an avoidable liability for Nagaland.



