AP govt eyes Rs 1000 cr from 2nd round of red sanders auction

Hyderabad: Eyeing a revenue of Rs 1,000 crore, Andhra Pradesh Government will auction 3,500 tonnes of seized red sanders wood in the second phase on an electronic platform by inviting global tenders in June.

"The sale of seized red sanders in log form, cut by smugglers in Seshachalam forests, will be conducted for four days from June 17. In the second phase, 3,500 MT will be sold through e-tender-cum-e-auction process", Principal Chief Conservator of Forests (Head of Forest Force) A V Joseph stated.

"In the first phase, government had appointed MSTC Ltd, a Government of India enterprise, as the agency for conducting e-auction services and state Forest Development Corporation Ltd as the export agency to realise the sale proceeds. Andhra Pradesh Forest Department recently notified the sale of about 3,500 MT of graded red sanders wood in the second phase through e-auction process that is stored in Central Warehousing Corporation godown at Renigunta in Chittoor. Intending tenderers or their representatives can inspect the lots notified for sale on any working day till June 16. The domestic and international tenderers should register themselves with the MSTC", Joseph said

" A pre-bid meeting will be held in Hyderabad on May 29", he added.

The Director General of Foreign Trade (DGFT) had earlier issued notification permitting the government to export 8,584 tonne red sanders wood in log form out of the confiscated/seized stock available with the state government.

Accordingly, in the first phase of the global auction for 117 lots, consisting of 2,694 tonne red sanders wood, was conducted in November-December last year that fetched the government Rs 855.91 crore. In the first auction, red sanders logs of A grade fetched a price Rs 1.95 crore per tonne, price for B grade ranged from Rs 155.35 lakh to Rs 48.45 lakh per MT while for grade C, the price ranged of Rs 40.72 lakh and Rs 15.15 lakh.

For the second round, government has fixed a starting price of Rs 12 lakh per tonne for C grade, Rs 20 lakh per tonne for B grade and Rs 30 lakh per tonne for A grade sandalwood.

Forest department estimates that a sum of Rs 1,000 crore could be earned through the second round of sales. Round-the-clock police security has been provided around the godown along with electric fencing and installation of CCTV cameras, Additional Principal Chief Conservator of Forests (Vigilance) B Muralikrishna said.

In order to reach out to maximum number of potential purchasers, forest department has written to foreign embassies in India to inform them with regard to auction of red sanders, beside undertaking print campaign.

Red sanders, also known as red sandalwood, is a valuable wood which has a huge demand overseas, particularly in China, Japan and East Asia where it is used for making cosmetic products, furniture, musical instruments and is even used in traditional medicines.

Red sanders grow mainly in Seshachalam hill ranges spread across Kadapa, Chittoor and Kurnool in the Rayalaseema region and parts of Nellore district in AP, though majority of red sanders smuggling takes place from Chittoor and Kadapa.

The wood commands a good price, specially in the markets of China and Japan. In past few years, there could not be any sale of red sanders in the international market due to the EXIM policy.

Source:PTI