Andhra earns Rs.1,000 crore from e-auction of red sanders

The Andhra Pradesh government has earned Rs.1,000 crore from the global e-tender-cum-e-auction for sale and export of 4,160 metric tonnes of confiscated red sanders logs, officials said.

Andhra Pradesh Principal Chief Conservator of Forests A.V. Joseph said the Indian and foreign buyers participated actively in global tender. He said the e-auction fetched revenue of above Rs.1,000 crores.A

The week-long e-auction through the central government's Metal State Trading Corporation (MSTC) e-commerce platform was completed Monday night.

The e-auction received huge response from the global buyers as average price exceed the expected Rs.25 lakh per tonne. Joseph said the overall average rate per metric tonne obtained during the sale was Rs.27.41 lakhs.

The red sanders logs were categorized as A, B and C grades. The notified quantities for different grades of red sanders was 'A' grade - 4.69 metric tonnes (MT), 'B' grade - 166.18 MT. and 'C' grade -3,988.81 MT.

For 'A' grade the price offered was Rs.195.54 lakh per MT, for 'B' grade, Rs.155.35 lakh per MT and lowest Rs.48.45 lakh per MT and for 'C' grade the highest price was Rs.40.72 lakh per MT and minimum Rs.15.15 lakh.

The MSTC will submit list of the highest bidders to the state government, which will then initiate the process of sale and exports.

Though the Director General of Foreign Trade had given permission for sale of 8,584 tonnes, the state government decided to put only 4,160 tonnes for sale and export in the first phase. The remaining red sander is expected to be sold in the second phase.

The state plans to use 30 percent of the proceeds from the sales for protection of the natural red sander forest. The remaining money may be used to finance the government's scheme to waive farm loans.

The state government had conducted road shows and pre-bid meetings in China and Japan, where the wood is in huge demand.

Following this, over 400 prospective buyers including 140 from China, Japan, Singapore and other countries visited the red sanders depots.

Classified as endangered in International Union for Conservation of Nature's red list, red sanders fetches Rs.25 lakh per tonne in the international market. It is mainly used in aphrodisiac drugs and for making musical instruments and furniture.

In Andhra Pradesh, red sanders grow mainly in the Seshachalam hill ranges spread across Kadapa, Chittoor and Kurnool districts in the Rayalaseema region and parts of Nellore district. The area under red sanders is estimated to be 4.67 lakh hectares.

The forests in recent months witnessed bloody clashes between red sander smugglers and police. In May this year, police gunned down three red sander smugglers in Chittoor district.

Two forest officials were killed and three were injured in the attack by the red sander smugglers in the same district in December last year.