Mysore/Mysuru: With the Forest Department set to auction 138 metric tonnes of sandalwood logs of various classifications from the Government Sandalwood Depot (Sandal Koti) at Aranya Bhavana in Mysuru tomorrow (Mar. 25), the Akhila Karnataka Sandalwood and Agroforestry Growers’ Association has urged the State Government to fix a retail price for sandalwood on the lines of Tamil Nadu and provide incentives to growers.

The auction will be held online from 11 am to 2 pm. The Forest Department has fixed the base price at Rs. 1.50 crore. However, the Association alleged that the base prices are significantly undervalued and do not comply with the Karnataka Forest Rules, 1969.

Addressing a press meet at the Pathrakarthara Bhavan yesterday, Association Honorary President and retired IAS Officer K. Amaranarayan alleged discrepancies in the pricing fixed by the Forest Department.

He said that the auction’s base price could result in substantial losses to the Department, raising suspicions of collusion with buyers.

Highlighting the disparity, Amaranarayan cited the example of the ‘Chotla’ variety, which has been priced at Rs. 7,000 per kg in Karnataka, compared to Rs. 22,823 per kg in Tamil Nadu, a difference of                                                      Rs. 15,823 per kg.

“There is reason to believe that vested interests have ensured that prices are not revised, resulting in sustained undervaluation,” he alleged.

Loss of GST, Forest Development Tax

He demanded that the auction process be halted until a retail price is fixed. “Karnataka grows the highest quantity of sandalwood in the country, yet thefts are rampant and growers do not get adequate protection,” he said, adding that the Chief Conservator of Forests should determine the average rates for auctions and sales.

Amaranarayan further said, Tamil Nadu’s average auction values should be taken into account and if Karnataka’s auction rates are lower, the loss should be borne by the officials.

He also criticised the absence of retail pricing under Section 108(6) of the Karnataka Forest Rules, 1969, for the years   2021-22 to 2024-25.

“There is a sharp difference between Tamil Nadu’s and Karnataka’s rates, and with a 30 percent tax burden, growers here are facing severe hardship,” he said. He added that lower auction values would also reduce the Government’s revenue from 18 percent GST and 12 percent Forest                                                       Development Tax.

Association Members Vinayak Bhat and Hanagod Basavaraj were also present at the press conference.