HYDERABAD: The Andhra Pradesh government is all set to sell over 4,000 metric tonnes (MTs) of red sanders in log form through e-tender-cum-e-auction process by inviting global tenders next month.
The e-tender-cum-e-auction process for sale of red-sanders will be conducted for six days from September 19 for selling 4,160 MTs of red-sanders wood in 177 e-lots containing 1,77,877 logs in first phase, Additional Principal Chief Conservator of Forests P K Jha told reporters here today.
Convention on International Trade in Endangered Species (CITES), has given a one time relaxation permitting India to export 11,806 MTs of seized and confiscated red sanders in any form including log form.
The Director General of Foreign Trade (DGFT) has also issued notification permitting Andhra Pradesh government to export 8,584 MT of red sanders wood in log form by amending EXIM policy, Jha said. "The AP government has constituted a Tender Committee to sell over 4,000 MTs of red sanders in log form in the first phase on electronic platform by e-tender-cum-e-auction process, appointing MSTC Ltd, a GoI enterprise, as selling agent and AP Forest Development Corporation as export and revenue realisation agency," he explained.
The government has fixed starting price of Rs 7 lakh to Rs 12 lakh per metric tonne for A, B, C and non-grade respectively based on rates obtained by Tamil Nadu forest department in auction for domestic purposes. "In order to reach maximum number of purchasers. We are planning to have roadshows in China, Singapore and Hong Kong besides giving advertisements in different media," he said adding purchasers can visit any timber depot before the e-auction process begins to inspect about quality/quantity of wood put out for sale.
The purchasers have to first register themselves with MSTC Ltd and deposit 10 per cent of start price by bank transfer as pre-bid deposit and additional 10 per cent in form of bank guarantee as additional pre-bid deposit to participate in the e-tender-cum-e-auction process to avoid any default and ensure participation by genuine interested parties in the sale, Jha said.
The government has constituted an 'auction team' with senior officers from Forest and Finance departments to work out the strategy and co-ordinate process of conduct of sale. Red sanders grow mainly in the Seshachalam hill ranges spread across Kadapa, Chittoor and Kurnool in the Rayalaseema region and parts of Nellore district in AP. The wood has huge demand abroad, especially in China and Japan, where it commands a good price. Red sanders is a valued item in traditional medicines and woodcraft across China, Myanmar, Japan and East Asia and each tonne of red sanders commands a price of Rs 25 lakh in the international market.
In the last few years, there could not be any sale of red sanders in international market due to the EXIM policy , though there is huge demand for it in China,Japan and other overseas market.