Smugglers are systematically plundering the forests in this district for the khari (acacia catechu) tree, used by kattha manufacturing units all over the country. The wood lost annually is worth Rs 5 crore. Even as the forest department claims to be doing its best to counter the smugglers, who are armed with sophisticated communication and transportation facilities, the government has written to the Centre, asking it to direct the administration of Daman, Diu and Nagar Haveli to be alert to the entry of smuggled khari from Gujarat to Daman, where a Rs 2-crore kattha manufacturing plant came up an year ago.