Six police personnel were also injured in what the police claimed was an attack by the smugglers allegedly armed with sickles, axes and country-made weapons.
The task force and forest personnel, during a joint combing operation, spotted over 200 red sanders woodcutters involved in felling trees and they were asked to surrender.
"However, the smugglers, armed with sickles, axes, swords, country-made weapons and stones, attacked the police and forest personnel injuring six policemen," Deputy Inspector General of Police (Special Task Force) M Kantha Rao told PTI.
However, there was strong reaction from political parties in Tamil Nadu to the incident.
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DMK, BJP, PMK and CPI claimed that poor labourers from the state were among the victims and asked the Andhra Pradesh government to "pursue lawful means" to check red sanders smuggling.
Claiming that they were innocent labourers from Tamil Nadu who were lured with higher wages to forests in neighbouring Chittoor, NDA ally, PMK chief Ramadoss said their being shot down without even an inquiry was unacceptable.
DMK chief Karunanidhi, in a statement said, governments of both the states should announce relief to the families of the labourers killed in the exchange of fire.
"We are in touch with our counterparts in Andhra Pradesh. We are verifying if 12 of those killed were labourers from Thiruvannamalai and Vellore Districts," a top Tamil Nadu police official told PTI.