"The meeting decided to auction 173 tons of the red sandalwood and the other 54 tons will be returned to India," said Minister for Forest and Soil Conservation Dipak Bohara on Tuesday.
He said the committee has set the price of the 173 tons of red sandalwood at Rs 800 per kilogram.
The wood was seized at various times throughout the country.
The Convention on International Trade in Endangered Species (CITES) has banned the trade in red sandalwood.
"We took this decision in particular about sandalwood seized by the government. We are a signatory member of CITES and we will take a decision in view of its provisions and other legal aspects," Bohara further clarified.
Related story
Police arrest two people in possession of red sandalwood
