Amid the buzz surrounding the Allu Arjun-starring Pushpa 2: The Rule and its massive box office success, a contrasting reality emerges in Andhra Pradesh. The action drama, portraying Arjun as a red sanders smuggler, has collectively earned around Rs 1,500 crore from its first and second parts. However, the state government struggles to earn even a fraction of that amount from its red sanders auctions, with international buyers showing little interest in the prized wood.
Red sanders, also known as red sandalwood, is a rare species found in Andhra Pradesh’s Rayalaseema region. It is listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora, which prohibits its felling or sale by private entities. However, India received special permission to remove red sanders from the endangered list, allowing its sale under strict government authorization.
Despite this relaxation, Andhra Pradesh—the primary authorized seller of red sandalwood in India—has failed to find buyers in the international market since the onset of the Covid-19 pandemic. The species, valued for its use in traditional medicine and luxury goods, remains unsold, compounding the government’s challenges in leveraging its auction potential.
Pandemic Paralyzes Red Sanders Trade
The Seshachalam Hills, one of India’s most biodiverse regions, continues to face rampant smuggling of red sanders even as legal sales have stalled. Since 2020, the Andhra Pradesh government has not managed to sell a single tonne of the wood in international auctions. China, which was previously the primary market for red sandalwood, has significantly reduced its demand.
A government source disclosed, “Since the pandemic began, no red sandalwood has been sold at any international auctions. The global economic slowdown has affected demand, with China, in particular, cutting back.”
This downturn contrasts with Andhra Pradesh’s earlier efforts. Since the 1990s, the government has conducted 24 rounds of international auctions, generating Rs 1,800 to Rs 1,900 crore—an amount only marginally higher than the earnings of Pushpa.
The most recent auction attempt, held in November and December this year, saw the government offering 905 tonnes of red sandalwood. Unfortunately, not a single tonne was sold. Officials attribute this failure to the lingering economic impact of the pandemic and cautious international buyers.
High-Value Logs in Storage
Currently, Andhra Pradesh has been authorized by the Directorate General of Foreign Trade to auction 11,000 tonnes of red sanders. However, approximately 4,000 tonnes remain unsold and are stored in a high-security depot in Tirupati.
The wood is classified into three grades: A, B, and C, with A-grade being the highest quality. In past auctions conducted under the Telugu Desam Party government, A-grade red sandalwood fetched between Rs 1 crore and Rs 1.5 crore per tonne. Today, its value has dropped to around Rs 75 lakh per tonne, reflecting the market’s slump.
Despite these challenges, government officials are unwilling to lower the prices further. A senior official explained, “We expect demand to rebound. Reducing prices now could encourage smugglers to exploit the situation, manipulate the market, and form cartels.”
A Persistent Issue
The economic struggles of legal red sandalwood trade starkly contrast with the illicit smuggling activities that continue unabated. The Seshachalam Hills remain a hotspot for illegal trade, even as the state government battles to find legitimate avenues for profit.
While the box office success of Pushpa 2 showcases the commercial allure of red sanders smuggling as a cinematic theme, the reality for Andhra Pradesh’s government is far less glamorous. The state’s inability to sell even a tonne of its prized wood in recent years underscores the complex interplay of environmental regulations, global market conditions, and economic uncertainties.
As Andhra Pradesh waits for international demand to recover, the stark contrast between Pushpa’s fictional narrative and the real-life challenges faced by the state serves as a telling commentary on the complexities of red sanders trade.
