Santalum album L. commercially known as East Indian Sandalwood is indigenous to peninsular India. The Sandalwood tree is highly regarded in the Vedic texts, and the heartwood is considered to be sacred. Sandalwood is considered the epitome of excellence, imparting fragrance even to the axe that cuts it. In the last few decades, the demand and value of the Santalum album Linn (Sandalwood) has increased significantly. Sandalwood trees are almost vanished in the natural forest due to over exploitation, smuggling, grassing, fire hazards, disease and deforestation. Sandalwood and its fragrant oil are in high demand on both domestic and international markets. State governments, meanwhile, are encouraging the growing interest in growing sandalwood on private land. In India, especially the state forest department, strictly regulates the sandalwood trade. Sandalwood cannot be sold directly to customers or private business partners by farmers. Sandalwood can be sold by farmers to government agencies. The state forest department will classify and list sandalwood lots for sale through an online auction platform with the necessary permits and inspections. The different state government classifications, imports, and exports of sandalwood and its aromatic oil were discussed in this research paper.