Australia exports sandalwood oil to Karnataka as state’s production, quality decline: Report
Bengaluru: In a reversal of roles, Australia, which once imported sandalwood seeds from Karnataka, is now exporting sandalwood oil to the state. This shift comes amid a decline in both the quality and yield of farm-grown sandalwood in Karnataka, resulting in increased reliance on imports to meet domestic demand.
Private companies and Karnataka Soaps and Detergents Limited (KSDL) are increasingly diversifying their product lines due to the shortage of raw material, as reported by The New Indian Express on Thursday. Many are shifting focus to non-sandal-based items such as jasmine, rose, lavender, and aloe vera.
A KSDL official said that there is currently a 60–70% shortage of both sandalwood and its essential oil, severely impacting domestic production. To compensate for the shortfall, they are importing approximately 5,000 kg of sandalwood oil from Australia annually which continues to rise each year.
“Australia has become one of the largest suppliers of oil. Since Karnataka’s sandalwood is of supreme quality, Australia took the seeds from Karnataka in the 1990s and harvested them in a secure environment. Good quality of oil was extracted and Australia is gradually becoming a leading exporter of sandalwood oil,” TNIE quoted the KSDL official as saying.
The official added that, in addition to sourcing farm-grown sandalwood within the state, KSDL is also procuring wood from other states, including Tamil Nadu, Kerala, Gujarat, and Madhya Pradesh, to meet the demand.
The decline in both the quantity and quality of sandalwood was highlighted in the Sandalwood Development Committee’s report released by the Central Vista Oversight Committee. The report, cited by TNIE, also identified Australia as the largest sandalwood market, holding approximately 69 percent of the market share, followed by India with a 20 percent share.
Officials at the Institute of Wood Science and Technology mentioned that, although sandalwood is a hardy species requiring a stressful environment to thrive, factors such as declining soil quality, reduced land fertility, and inadequate protection measures are contributing to a deterioration in its quality.
The Karnataka Forest (Amendment) Bill, 2001, permits the cultivation of sandalwood on private lands. This policy change has reportedly encouraged private individuals to engage in the cultivation and protection of sandalwood trees.
KSDL Managing Director Prashanth PK stated that to boost wood procurement, they have signed Memorandums of Understanding (MoUs) with 735 farmers, resulting in sandalwood cultivation on over 4,000 acres. “But a lot more needs to be done as demand is rising. Due to shortage, KSDL is diversifying into other items,” TNIE quoted him as saying.
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Power tariffs under BESCOM to rise from May 1
Bengaluru (PTI): Power bills for consumers under the Bangalore Electricity Supply Company Limited (BESCOM) will go up from May 1, following an order issued by the Karnataka Electricity Regulatory Commission (KERC) on Friday.
The hike comes after KERC allowed the BESCOM to recover a revenue deficit of Rs 2,068 crore incurred in 2024-25, from the consumers.
As a result, for every unit of electricity consumed in 2024-25, the customers will be charged an additional 56 paise, it said.
"BESCOM shall calculate, for each of the active consumers of FY2024-25 the amount to be recovered based on their actual energy consumption during FY2024-25. Such amount shall be recovered during FY 2026-27 in equal monthly instalments, to be called as 'FY25 True up Charges', commencing from the first meter reading date falling on or after 1 May 2026 and concluding with the reading date ending on 30 April 2027," the order said.
"It is further ordered that BESCOM shall maintain a separate head of account, allocated for the purpose, to record the adjustment of the said amount to ensure full recovery of the deficit," it added.
Similarly Chamundeshwari Electricity Supply Corporation Limited (CESC) has also recorded a revenue deficit of Rs 121.71 crore and can collect an additional 15 paisa per unit for consumption in 2024-25, official sources said.
