India’s Agarwood Sector Receive Government Impetus

India’s Minister for Development of North Eastern Region (DoNER), Mr Jyotiraditya Scindia, laid the foundation stone of the ₹80 crore Agarwood Value Chain Development Scheme.

Mr Scindia stated that India’s agarwood production capacity is primarily concentrated in Tripura and Assam, and this scheme aims to infuse new energy into the strengths of both states.

Minister Scindia explained that the scheme will strengthen the entire agarwood value chain from trees in farmers’ fields to perfume bottles in international markets.

He informed that two Central Processing Centres (CPCs) will be established under the scheme, one in Golaghat (Assam) and the other in this region of Tripura.

These centres will enable comprehensive processing, branding and marketing, eliminating middlemen and ensuring that farmers receive the full value of their produce.

Agarwood, also known as oud or gaharu, is prized for its fragrant, resinous heartwood, derived from Aquilaria trees native to Southeast Asia and India’s Northeast region. 

The minister said several key steps have been taken to make India’s agarwood sector globally competitive, including the process for obtaining a Geographical Indication (GI) tag, which is underway.

Furthermore, export quotas have been increased sixfold; agarwood chips exports have been raised from 25,000 kg to 1.5 lakh kg; agarwood oil exports have been raised from 1,500 kg to 7,500 kg.

Sites and permissions are being integrated into a digital platform to enable farmers to connect directly with international markets. He emphasised that the clear objective is to remove intermediaries and ensure that the full benefit reaches farmers directly.

The minister said that Fulkabari’s agarwood sector stands as one of the strongest examples of Prime Minister Modi’s vision of ‘Local to Global’, ‘Vocal for Local’ and ‘One District One Product (ODOP)’.

He noted that India currently has around 150 million agarwood trees, nearly 90% of which are located in the Northeastern states. Through this scheme, Tripura’s production capacity is expected to increase by up to 50%.

The minister expressed confidence that, within the next 3–4 years, Tripura’s agarwood market alone could develop an annual turnover of ₹2,000 crore.

To connect farmers directly with global markets, buyer-seller meets are being organised. He cited a recent meeting with buyers from Qatar, where farmers were directly linked with international purchasers.

Concluding his address, the Minister said that this scheme is the result of Prime Minister Narendra Modi’s vision to focus on each state’s unique strengths. Continuous efforts in this direction have been underway for over a year, and today those efforts have borne fruit.

He expressed confidence that, in partnership with the Tripura Government, the agarwood sector will be given global recognition, making the state a new benchmark in the journey towards Atmanirbhar Bharat.