Auction of Seized Red Sanders from September 19: AP Govt

4,169 metric tonnes to go under the hammer in the first phase; notification for tenders issued

Published: 09th August 2014 08:12 AM  |   Last Updated: 09th August 2014 08:12 AM   |  A+A-

Express News Service


Hyderabad: The Andhra Pradesh government on Friday issued a notification for the auction of 4,160 metric tonnes of seized red sanders. The e-tender-cum-e-auction will be conducted for six days from Sept 19 by inviting global tenders.

Out of the 8585 MTs of red sanders permitted for sale in round log form by the Director General of Foreign Trade for Export, 4,160 MTs  would be sold in 177 e-lots containing 1,77,877 logs in the first phase.

The government had fixed the base price of “A” grade at `12 lakh, “B” grade at `10 lakh, “C” grade at `8 lakh and non-grade at `7 lakh.

In October last, the Convention on International Trade in Endangered Species of Wold Fauna and Flora (CITES) had given a one-time relaxation permitting India to export 11,806 tonnes of seized and confiscated red sanders in log form. A quota of 8,584 tonnes of the total permitted quantity was given to Andhra Pradesh and the remaining to Central Government agencies which confiscated the wood in other parts of the country.

The sale of red sanders became big news after Chandrababu Naidu government announced that it was thinking of using the sale proceeds to fund the `43,000-crore crop loan waiver scheme. The government is expecting `2,000 crore from the sale of red sanders.

Principal chief conservator of forest AV Joseph and additional chief conservator of forest PK Jha said MSTC Limited, a public sector undertaking, has been authorised to  conduct the auction.

“The purchasers have to first register themselves with MSTC Limited and deposit 10 percent of the base price by bank transfer as pre-bid deposit and additional 10 percent in the form of bank guarantee as additional pre-bid deposit to participate in the auction”, Joseph said.

Red sanders would be sold at the forest department’s depots at Kadapa, Bhakarapet, Tiruapti, Uadayagiri, Kanigiri, Adurupally and Venkatagiri, he said and added that one e-lots of “A”  grade red sanders numbering 170 logs and weighing 4691 MT, 11 e-lots of “B” grade numbering 4851 logs and weighing 116, 5 MT and  165 e-lots of “C” grade numbering 172856 logs and weighing 3989 MT would be put up for auction.

He said purchasers can visit any timber depot before the e-auction process begins between August 11 and September 17 to inspect the quality of the wood.

“In order to reach maximum number of purchasers, we are planning to have roadshows in China, Singapore and HongKong besides giving advertisements in different media,” he said.

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, PK Jha said. The wood has huge demand abroad, especially in China and Japan, where it commands a good price, he added.

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 a huge demand for it in China, Japan and other overseas market, he pointed out.

The AP Forest Department will raise red-sander saplings from October and distribute the same from next rainy season among people of Rayalaseema districts, he said.

Fact Sheet

■ 4,160 metric tonnes of seized red sanders to be auctioned

■ e-tender-cum-e-auction will be conducted for six days

■ Red sanders has huge demand abroad especially in China and Japan

■ Govt planning to have roadshows in China, Singapore and HongKong besides giving advertisements

■ Govt hopes to raise Rs 2,000 crore from sale of red sanders


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