Bangalore: Karnataka Soaps and Detergents Limited (KSDL), the only company in the world that manufactures toilet soaps with 100 per cent sandalwood essential oil, is struggling to find raw material to work to even a quarter of its capacity. A good number among the 1,000-odd sandalwood carvers registered with Karnataka State Handicrafts Development Corporation (KSHDC) are shifting to other mediums or finding new vocations.

These hard truths are not easy to swallow in the Suvarna Karnataka year. Ironically, even as we continue to hear Rajkumar's song "Naaviruva taanave gandhada gudi... " (The land we inhabit is a temple of sandalwood... ) from Rajyotsava pandals, there are hardly any mature sandalwood trees left in our natural forests. While Karnataka produced around 3,000 tonnes of sandalwood annually 30 years ago, it hardly produces 50 tonnes now.

Culture and commerce have always had a symbiotic relationship and sandalwood is a case in point. Realising its commercial potential, Tipu Sultan called it the "royal tree" in 1792, and made its trade a state monopoly. Today, even as it remains a cultural symbol, the absence of sustained regeneration programmes coupled with intensive smuggling, have reduced it to just that — a symbol. This is best reflected in what is happening to KSHDC and KSDL — interestingly, one a traditional cottage industry and the other born out of Sir M. Visvesvaraya's modernist aspirations.

Requirement

As against KSHDC's demand of 120 tonnes to 130 tonnes of sandalwood a year, the State is able to allot only 10 to 15 tonnes. KSHDC is expected to meet the shortfall by bidding in the open market. But while a kg of sandalwood costs Rs. 1,800 when it comes through Government allotment (which is given to artisans with a 50 per cent subsidy), the same quantity comes to them at a landing price of Rs. 4,500 when they bid in auctions in Tamil Nadu.

The situation at KSDL is only a shade worse because the State is not even providing it a nominal allotment (since 2001), forcing the company to bid in the open market for all its raw material.

KSDL Managing Director H.V. Parshwanath points out that while the company bought sandalwood at Rs. 1.44 lakh a tonne in 2001, the same quantity cost Rs. 35 lakh in 2006 — an incredible jump of 2,331 per cent.

But the price for a 75 gm of Mysore Sandal soap went up only from Rs.16 to Rs. 20 in the same period. Mr. Parshwanath points out that KSDL is operating only to 25 per cent of its capacity to extract essential oil because of non-availability of raw material and has even closed down the unit in Shimoga.

Heavy smuggling continues given the high prices sandalwood fetches in the international market. On the other hand, though the government has liberalised control over sandalwood and now allows individuals to freely grow sandalwood trees with a commitment to sell it only to the government, there have been no significant gains from sandalwood farming.

This is a stark contrast to Australia which now has vast areas of sandalwood farms. As a result, Australian sandalwood is gaining ground in the international market though Indian sandalwood — particularly from Karnataka — is far superior in quality.

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