Mysuru: The Akhila Karnataka Sandalwood and Agroforestry Growers’ Association has urged the State government to defer the proposed auction of 138 tonnes of sandalwood by the Mysuru Forest Division, alleging significant undervaluation in the base prices fixed for the sale.
Addressing a press conference on March 24, the Association’s honorary president K. Amaranarayan said the pricing for the upcoming online tender-cum-auction, scheduled for March 25, does not comply with the provisions of the Karnataka Forest Rules, 1969.
Allegations of undervaluation
According to the Association, the base prices fixed for various categories of sandalwood are considerably lower than the rates realised in neighbouring Tamil Nadu. The consignment, stored at the Government Depot at Aranya Bhavan in Mysuru, includes both timber seized from smugglers and stock procured from registered growers.
Highlighting the disparity, Amaranarayan pointed out that the ‘Chotla’ variety has been priced at ₹7,000 per kg in Karnataka, whereas similar auctions in Tamil Nadu have fetched an average of ₹22,823 per kg—a difference of ₹15,823 per kg.
He argued that such pricing would result in substantial financial losses for both sandalwood growers and the State exchequer.
Violation of forest rules alleged
Citing Rule 108(6) of the Karnataka Forest Rules, 1969, the Association stated that sandalwood prices must be revised annually based on the average auction rates within the State or, in the absence of recent auctions, based on prices in Tamil Nadu.
Amaranarayan alleged that the State has failed to revise sandalwood prices for four consecutive financial years—from 2021–22 to 2024–25—contrary to the legal mandate.
“There is reason to believe that vested interests have ensured prices are not revised, leading to sustained undervaluation,” he said, raising concerns about possible irregularities.
Concerns over transparency and revenue loss
The Association also flagged discrepancies in official data related to sandalwood stock. It pointed out that a reply in the State Legislature had mentioned seized sandalwood in the Mysuru division as 2,418 kg, whereas the current auction notification lists 138 tonnes.
“This raises serious questions about transparency and accounting,” Amaranarayan said, calling for clarity from the authorities.
He further warned that undervalued auctions would reduce government revenue, including collections from 18% GST and 12% Forest Development Tax, thereby impacting public finances.
Demand for auction deferment
The Association has urged the State Forest Minister to immediately defer the auction until prices are revised in accordance with the rules. It stressed that a rational revision of base prices would not only protect the interests of growers but also enhance revenue for the government.
Conclusion
The demand to postpone the sandalwood auction underscores growing concerns among stakeholders over pricing transparency and regulatory compliance. With significant financial implications at stake, the State government may face increasing pressure to review the process and ensure fair valuation before proceeding with the sale.