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Cash-starved AP to Auction 3,500 MT of Red Sanders

Published: 25th May 2015 06:02 AM  |   Last Updated: 25th May 2015 06:02 AM   |  A+A-

Red Sanders

HYDERABAD: The cash-starved Andhra Pradesh government, which is planning to turn red sanders into a money spinner, has constituted a six-member committee to fix the reserve (upset) price for the sale of 3,500 metric tonnes of confiscated stocks available with it for sale in the second phase through global e-tender-cum e-auction.

Special Chief Secretary (Forest) will head the committee. The tender panel constituted by the government has recommended a starting price of Rs 12 lakh per MT for C grade, Rs 20 lakh per MT for B grade and Rs 30 lakh per MT for A grade. The State government has appointed MSTC Ltd for conducting the sale, whereas AP Forest Development Corporation Ltd has been appointed as the export agency to realise the sale proceeds.

AP has secured permission to export 11,500 tonnes of red sanders. Of this, it auctioned 2,694 MTs tonnes in November last. In the second phase of auction, the State has planned to auction and export another 3,500 metric tonnes. The sale of red sanders in the first phase fetched AP Rs 991 crore and this time, it is expecting more.

In fact, in the first phase, the red sanders logs of A grade fetched Rs 1.95 crore per tonne, B grade from Rs 155.35 lakh to Rs 48.45 lakh per MT while it was in range of Rs 40.72 lakh and Rs 15.15 lakh per MT for C grade.

Convention on International Trade in Endangered Species (CITES) had 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 AP government to export 8,584 MT of red sanders wood in log form by amending EXIM policy.



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