Odisha government has scheduled the fourth phase of its international e-auction for premium red sandalwood

Bhubaneswar: 25/3/25:The Odisha government has scheduled the fourth phase of its international e-auction for premium red sandalwood on April 9, as disclosed in the state Assembly on Tuesday by Forest and Environment Minister Ganesh Ram Singh Khuntia.

Responding to a query from BJD MLA Arun Sahoo, Minister Khuntia revealed that the state possesses 4,539 red sandalwood trees, with 2,071 growing naturally and 2,468 cultivated through afforestation programs. The upcoming digital auction will allow global buyers to bid for the prized wood through a transparent e-tendering system.

The state’s commercial push follows crucial approvals from the Centre. After negotiations with the Directorate General of Foreign Trade (DGFT), the Union Commerce Ministry lifted export restrictions on 810.189 metric tons of red sandalwood, authorizing sales until September 2025.

The Odisha Forest Development Corporation (OFDC) has already conducted three successful auction phases, selling 38.708 metric tons that generated ₹13.7 crore in revenue. With 809.784 metric tons still available, the April 9 auction marks the next phase in this carefully planned disposal strategy.

“Maintaining our red sandalwood stock costs over ₹1 crore annually in security and preservation,” Minister Khuntia noted, emphasizing the economic rationale behind the auctions. The precious wood, valued in international markets for its medicinal and decorative uses, requires high-security storage to prevent smuggling.

This initiative represents Odisha’s balanced approach to monetizing forest resources while ensuring sustainable management. The e-auction mechanism not only maximizes revenue through competitive global bidding but also maintains transparency in the disposal of this controlled natural resource.

With the DGFT clearance valid until 2025, the state government plans systematic auctions to optimize returns from its red sandalwood reserves, turning ecological assets into developmental capital.