4. A History of Indian Sandalwood in Australia

Australia became a British colony of settlement in 1788; around 35 years later, the colony began trading in sandalwood. The trading supply chain of sandalwood was set firmly in harvesting the wild resource, initially the limited species found in the Pacific Islands and then into the local species growing in vast numbers throughout the semiarid lands of Western Australia. Sandalwood provided the fledgling Australian colonies with a very valuable trading resource that greatly assisted with easing the trade deficit and the economic future of the colonies. Today, sandalwood is still harvested from the Western Australian wild resource (Santalum spicatum), a large portion is processed and value added in Australia, while the traditional agarbatti industry is still being serviced. Plantations of both the native Western Australian species and Indian sandalwood have flourished in Australia since the late 1990s. Dedicated research trials and silvicultural development by Western Australian Government foresters paved the way for the private forestry. Private businesses were able to explore the potential benefits of plantation opportunities associated with a dwindling global natural supply. The semi-tropical climate of Northern Australia coupled with sophisticated irrigation systems, and land availability has given rise to a considerable Indian sandalwood plantation industry. Australia now has the world’s largest Indian sandalwood plantation resource. The harvesting of this resource has commenced with end products supplying various global markets and the Australian domestic market. As mature plantations are harvested and processed, they are replaced by new plantations fuelled by private investor financing.