Odisha's Red Gold: Cyclone-felled Red Sanders to fill state coffers

Red sanders, a precious wood prized for its rich crimson hue and therapeutic properties, is often referred to as "red gold." This rare and sought-after timber, native to the Eastern Ghats of India, has been coveted for centuries, not just for its beauty but also for its diverse applications. From intricate carvings and high-end furniture to traditional medicine and cosmetics, red sanders has played a significant role in cultural and economic traditions. Now, Odisha is poised to capitalize on a stockpile of this valuable resource, salvaged after the devastating Cyclone Titli in 2018.

The state government is preparing for a global e-auction of 771 tonnes of red sanders wood, with the expectation of generating approximately Rs 400 crore for the state exchequer. This substantial sum represents a significant increase from the Rs 15-20 crore earned in the previous year's auction, highlighting the potential of this precious commodity to bolster the state's finances.

The e-auction, facilitated by the Metal Scrap Trade Corporation Limited (MSTC) in collaboration with the Odisha Forest Development Corporation (OFDC), will commence on October 30th with 35 lots open for international bidding. To ensure maximum participation and optimal value realization, any unsold stock will be re-auctioned in subsequent cycles on November 13th and 27th.

This initiative follows the central government's relaxation of export norms for Odisha, allowing the state to sell red sanders despite a nationwide ban on its export. The ban, aimed at curbing illegal logging and protecting this endangered species, has created a high demand for red sanders in the international market. Odisha's ability to sell this valuable timber presents a unique opportunity to generate substantial revenue for the state.

The first auction, held in early 2023, saw limited success, with only 33 tonnes sold, fetching USD 30,000 to 40,000 per tonne. This relatively low volume of sales was attributed to various factors, including the global economic slowdown and logistical challenges. However, officials are optimistic about higher returns this time around, driven by several factors:

Increased global demand: The demand for red sanders in the international market remains robust, particularly in countries like China and Japan, where it is highly valued for its cultural and medicinal significance.

Improved auction process: The MSTC and OFDC have refined the e-auction process, addressing previous logistical challenges and ensuring a smoother and more efficient bidding platform for international buyers.

High quality of wood: The red sanders being auctioned is of exceptional quality, salvaged from mature trees felled by Cyclone Titli. This high-grade timber is expected to attract premium prices in the global market.

With high-grade red sanders commanding prices exceeding Rs 1 crore per tonne in the international market, the upcoming auction has garnered significant attention from potential buyers worldwide.