dna exclusive: In a first, government to export seized red sanders

In a first in India, the Directorate of Revenue Intelligence (DRI), Mumbai, is likely to start export of seized red sandalwood, popularly known as red sanders, in the next few months.

Highly placed sources in DRI claimed that the ministry of finance and environment has given an in-principle approval for export of this prohibited item which is listed amongst the banned items in the list of Convention on International Trade in Endangered Species of Wild Fauna and Flora.

However, the permission is being granted only for the "seized stock" which has been lying with the authorities.

In India, sandalwood business is lucrative for smugglers as it fetches high price in China where it is used for making musical instruments, cosmetics and costly furniture for five star hotels. In India the wood is primarily found in Andhra Pradesh, Karnataka and north Tamil Nadu.

Sources said, red sanders command Rs10 crore a tonne in China, while in India according to Customs officials, they cost something between Rs15 lakh and Rs20 lakh a tonne. However, a medium sized 25-year-old tree of red sanders, sells for as much as Rs 80,000- Rs1 lakh in the international market.

"The western zone has a stock of red sanders running into a few thousand kilograms which has been seized over the years. Since the wood has already been cut, stocking it in a storehouse won't be of any benefit. Therefore, a proposal to export it was floated and has received in- principle approval," said a senior DRI officer.

P K Dash, additional director general, western zone, said policy decision in this regard can be taken only by the finance ministry.

Sources said the cases of red sanders smuggling has increased by four times in India from 24 in 2011 to 85 in 2013. In January this year, the DRI had seized 10 metric tonnes of red sanders stocked in a container in Coimbatore.