Chinese red sanders bidders flock to warehouse

So far, 17 Chinese parties have visited the godowns since May 15, apart from 50 Indian firms. The number may well increase at the godown in control of Red Sanders Anti-Smuggling Task Force.

Red sanders logs meant for e-tendering displayed at a CWC godown at Renigunta in Chittoor district.

Many Chinese traders are likely to bid in the e-auction of red sanders logs that is scheduled to be held from June 17 to 21 in Hyderabad. The ongoing month-long physical verification of logs by prospective bidders at the Central Warehousing Corporation’s godowns in Chittoor district will close on June 16.

So far, 17 Chinese parties have visited the godowns since May 15, apart from 50 Indian firms. The number may well increase. The participation of Chinese visitors in the auction has become a topic of curiosity among forest and police officials against the backdrop of the arrest of two Chinese nationals, Yang Ping and Chen Yi Fian, in red sanders cases.

Senior police officials overseeing the anti-smuggling operations in the Seshachalam hills have learnt that there is more to the Chinese interest in red sanders than a fascination for the artefacts that can be made from its wood.

“Red sanders wood contains some alkaline substances that are used in the pharmaceutical and nuclear industry. The artefacts we have seized might just be an attempt by the smugglers to divert our attention,” said one office who is investigating the racket.

Assistant Conservator of Forests R.D. Venkatesh told The Hindu that it has been made mandatory for the Chinese visitors to the red sanders warehouses to show their passport and visa before they can see seeing the logs on offer.

The CWC godown near Renigunta is under the control of the Red Sanders Anti-Smuggling Task Force (RSASTF) and guarded by more than 50 armed personnel. There are daily inventory checks by forest and police officials. There is solar fencing around the godown and round-the clock electronic surveillance.

Some 3,253 tonnes of red sanders logs, including 780 tonnes of the A-grade, are on the block for the e-auction. The authorities have a total of 4,064 tonnes in their inventory.

The price of red sanders logs was Rs. 75 per kg last year. In contrast, police officials say they sell for US $ 180 in China.

The Chinese are particularly interested in the A-grade variety logs, with a value of Rs. 1.98 crore per tonne as determined in 2014. The value might be more than Rs. 5 crore per tonne in the international market.