Sandalwood growers flag ‘undervalued’ Mysuru auction, seek deferment

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 that the base prices are significantly undervalued and not in compliance with the Karnataka Forest Rules, 1969.

Addressing a press conference here on Monday, the Association’s Honorary president, K. Amaranarayan, a retired IAS officer, said the rates fixed for various sandalwood categories in the online tender-cum-auction scheduled for March 25 are far lower than the average prices realised in neighbouring Tamil Nadu.

The consignment — comprising 138 tonnes of sandalwood stored at the Government Depot at Aranya Bhavan in Mysuru — includes both timber seized from smugglers and stocks procured from registered growers, he said.

Highlighting the disparity, Mr. Amaranarayan cited the case of the ‘Chotla’ variety, for which the price fixed in Karnataka is ₹7,000 per kg, as against ₹22,823 per kg in Tamil Nadu — a gap of ₹15,823 per kg.

Mr. Amaranarayan cited Rule 108(6) of the Karnataka Forest Rules 1969, which states, “the rates relating to the value of sandalwood trees shall be fixed by the Chief Conservator of Forest every financial year based on the average price realised in auction sales of sandalwood conducted in the State. If no auction has been conducted in Karnataka recently, the average value realised in auctions conducted in Tamil Nadu shall be taken into consideration”.

He alleged that the State has failed to revise sandalwood prices for four consecutive financial years — from 2021-22 to 2024-25 — contrary to the mandate of the Rules. “There is reason to believe that vested interests have ensured that prices are not revised, resulting in sustained undervaluation,” he said.

Mr. Amaranarayan further alleged possible collusion between officials and buyers in keeping prices artificially low, leading to losses for both growers and the State exchequer. He added that lower auction values would also reduce the Government’s revenue from 18% GST and 12% Forest Development Tax.

Pointing to discrepancies in official data, he said that a reply to Unstarred Question No. 627 (765) in the State Legislature had pegged the quantity of seized sandalwood in the Mysuru division at 2,418 kg, whereas the current auction notification refers to 138 tonnes. “This raises serious questions about transparency and accounting,” he said.

He urged the Forest Minister to immediately defer the auction until prices are revised in accordance with Rule 108(6). “A rational revision will not only enhance government revenue but also ensure fair returns to growers,” he added.