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Andhra Pradesh hopeful of bagging 1,000 crore from 2nd round of red sanders auction


  • Andhra Pradesh Government is going to auction 3,500 tonnes of seized red sanders wood in the second phase on an electronic platform by inviting global tenders in June, hoping to seize a revenue of Rs 1,000 crore.
 Sale Profits:
  • The first phase of global auction for 2,694 tonnes red sanders wood was conducted in November-December last year that fetched the government Rs 855.91 crore.
  • 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.


  • The sale will be conducted through e-tender-cum-e-auction process for four days starting from June 17, as said by Principal Chief Conservator of Forests (Head of Forest Force) A V Joseph.
  • MSTC Ltd, a Government of India enterprise was appointed by government in the first phase as the agency conducting e-auction services and state Forest Development Corporation Ltd was the export agency to realize the sale proceeds.
  • The seized red sanders are stored in Central Warehousing Corporation godown at Renigunta, Chittoor district, where any intending tenderer can inspect the lots on any working day till June 16. The domestic and international tenderers are supposed to register themselves with MSTC.
  • The Director General of Foreign Trade had earlier issued notification permitting the government to export 8,584 tonne red sanders wood in log form out of the confiscated stock available with the state government.


  • Red sanders, also known as red sandalwood, 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.
  • 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.

About Arvind Kumar

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