Regulatory Framework
From State Monopoly to Liberalisation
Sandalwood in India was historically classified as state property, meaning the government owned all sandalwood trees regardless of whether they grew on private or forest land. This was enforced through state-level legislation, most notably the Karnataka Forest Act and related rules. The strict regulation, while intended to prevent overexploitation, paradoxically incentivised smuggling (most notoriously by Veerappan, who operated across the Karnataka-Tamil Nadu border from the 1970s to 2004) and disincentivised private cultivation.
- Before 2001-2002: Growing, cutting, and selling sandalwood by individuals was largely prohibited in most states
- Karnataka Forest (Amendment) Bill, 2001: Allowed farmers to grow and sell sandalwood on private lands — a landmark liberalisation
- Several states subsequently relaxed regulations: Tamil Nadu, Andhra Pradesh, and Kerala amended their forest acts
- Despite liberalisation, regulatory complexity remains: Transit permits, felling permits, and state-specific rules create compliance burdens
- Smuggling legacy: Veerappan's decades-long sandalwood and ivory smuggling operation highlighted the failure of prohibition-based regulation
- Indian Forest Act, 1927 (Section 41): Governs transit of forest produce including sandalwood
● Tracked since February 19, 2026 · last seen September 06, 2026 · updates as the daily brief publishes
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