Nepal caught in contraband timber stalemate

Smuggled Indian sandalwood bound for China is still stuck in Nepal

Sunita NeupaneNews

A truck, which was seized while transporting smuggled red sandalwood, a type of wood endemic to Andhra Pradesh in India, through Nepal has been left to rust in the yard of Nepal’s Department of Forest and Soil Conservation in Kathmandu. Photo: SUNITA NEUPANE
A truck, which was seized while transporting smuggled red sandalwood, a type of wood endemic to Andhra Pradesh in India, through Nepal has been left to rust in the yard of Nepal’s Department of Forest and Soil Conservation in Kathmandu. Photo: SUNITA NEUPANE

Over the years, Nepal seized truckloads of the contraband timber being smuggled from India to China. But the red sandalwood is stuck as officials cannot seem to be able to get rid of it. 

Under Nepal’s domestic law implementing the Convention on International Trade of Endangered Species (CITES), an international treaty meant to prevent the trafficking of endangered plants and animals, Kathmandu must ask the India to take back confiscated items. 

New Delhi has agreed to take back certain amount of the wood, but more than 273 tons of one of the world’s most prized timbers is still sitting in Nepal which does not seem to want to upset its next-door neighbour.

“India is a key ally,” says Maheshwar Dhakal at the Ministry of Agriculture, Forest, and Environment. “We worry that putting the timber up for auction could draw criticism from India and strain bilateral relations so Nepal has simply held onto the stock.”

Nepal’s own law says that once the country of origin agrees to take back the confiscated material, it is required to collect it within 90 days and cover the cost of repatriation. If it declines to take back the material or fails to repatriate it within the stipulated period, the law allows Nepal various options: sell the wood by auction, hand it to a public institution for research or religious purposes, or destroy it after approval from local administrative officials. 

So far, not one of these options has been taken up by Nepal on the confiscated red sandalwood, ‘red sanders’. 

Red sandalwood

Red sandalwood grows naturally only in a small stretch of southern and eastern India. Prized for its striking red hue and unique medicinal properties, it is used in China to create ornate furniture, musical instruments and even to make traditional remedies. 

It is so rare and valuable that it has become one of the most trafficked timbers on the planet, according to the World Wildlife Fund.

ROTTING TIMBER

In 2017, Nepal burned a stockpile of confiscated wildlife  parts that it had accumulated for years. But its inventory of seized red sanders is in storage in several places, with some rotting, while at least 19 metric tons have been pilfered. 

“Nepal hasn’t put red sandalwood up for auction in over two decades,” says Dhirendra Pradhan at the Department of Forests and Soil Conservation. “That choice rests entirely with the Cabinet – we can’t move forward without a clear mandate, and this lingering uncertainty has turned into a major administrative headache.”

In January 2025, more than 460 kg of red sanders were seized from alleged smugglers in Kathmandu, adding more to the stockpile. 

At the Department of Forest and Soil Conservation (DFSC) in Kathmandu, the timber fills seven trucks, their faded, peeling paint revealing years of stagnation. Elsewhere in the country, warehouses at more than 20 divisional forest offices are also full of the smuggled wood.

Since September 2009, 35 police and forest guards have provided round-the-clock security for the red sanders in Kathmandu. 

“This is an issue that needs to be resolved,” said Netra Bahadur Karki, of the paramilitary Armed Police Force. “The team could have been deployed elsewhere, but the government is spending resources to guard the red sandalwood. Still, once the state assigns us this responsibility, we have no choice but to carry it out.” 

Adhikari, whose responsibilities include ensuring the import and export of endangered species comply with national laws and regulations, worries that more of the stockpile will be stolen, or that its quality will decline. 

Nepal’s government has changed 15 times since 2008. The country’s political instability has meant successive administrations did not have enough time to deal with the red sanders stockpile. 

“Frequent changes in government have caused the issue to languish,” said Dhakal. “Officials who work on it continuously are often transferred or disconnected from the process. As a result, one government starts the process, but another takes over before it is completed. The new government then has to begin again, leaving Nepal unable to decide on its own.”

Nepal  seems to be waiting for a signal from India regarding its inventory of seized red sanders. “Either India takes it back, or it should allow us to find another option,” Karki said.

Despite India’s strict regulations on red sandalwood, illegal logging continues, putting intense pressure on the slow-growing species that cannot replenish quickly. Between 2016 and 2020 alone, an estimated 20,000 tons of red sandalwood were illegally smuggled out of India, according to CITES data, with China the largest importer. 

The International Union for Conservation of Nature estimates the wild population of red sanders has fallen by about 50 percent over three generations, underscoring why the timber is so heavily controlled. 

Nepali officials declined to provide a value for the wood, but Indian authorities were cited in 2022 saying one ton of red sandalwood was worth at least $52,200 on the international market. This would put the value of Nepal’s red sanders stockpile at over $14 million.

Sabanam Pathak at Nepal’s Department of Forests and Soil Conservation says the government had approved the repatriation of the red-sanders stockpile several times. Nepal’s law implementing CITES came into force in 2017, which means that for nearly a decade now, Nepali authorities no longer have had to guess what they could do if a country of origin did not take back any seized goods within the prescribed period.

In 2009, an initial decision authorised the return of 54.11 metric tons of red sandalwood, though India ultimately collected only half the amount — the only handover to India of seized red sanders from Nepal.

“India has never stated that it would refuse to take back the timber,” said Dhakal. “It has approved all of our cabinet’s decisions and repeatedly indicated that it would collect the timber., but it has never happened.”

Seized red sandalwood in Andhra Pradesh in 2006. Despite strict regulations, this rare, prized wood is illegally smuggled out of India into Nepal border and into China. Photo: WIKIMEDIA COMMONS / P JEGANATHAN

Adhikari was sure there would be another handover in 2024. At the time, he said, India via email had expressed its intent to collect 173.07 metric tons and even arranged a Nepal-based transporter to facilitate the transfer. But no one from the Indian side came to collect the stock.

Ain Bahadur Shahi Thakuri, who served as Minister of Forests and Environment until September 2025 and led the 2024 effort to send the red sandalwood back to India, said he wrote to the Indian Embassy through the Ministry of Foreign Affairs, and India agreed to take the wood back within 90 days. 

“But when we followed up repeatedly, Indian officials kept saying the matter was being processed, but nothing happened,” said Thakuri, who raised the issue directly with India’s environment minister Bhupender Yadav who said Nepal could use the wood for cremations.

But Thakuri’s tenure ended soon afterward, and the process did not move forward. 

Dhakal said India has refrained from repossessing the seized timber due to steep transportation costs, the need for heavy police security, and that much of the stock has already rotted beyond use. But Nepal has been left with the burden of devoting manpower and money to safeguard it. 

“India had not properly fulfilled its obligations under CITES,” said Dhakal who still hopes Kathmandu and New Delhi can resolve the stalemate. 

For Kumar Paudel at the non-profit Greenhood Nepal, the Nepal government is complicating the issue by not resolving the issue itself. “Nepal is an independent country and can make its own decisions,” he said. “It is not wise for us to continue spending our own resources protecting the timber year after year.”.

Sunita Neupane is an independent investigative journalist based in Kathmandu reporting on human rights, social justice, public health and environment. This story was produced in collaboration with Egab.