Agarwood revolution in the villages of Assam-Tripura
- Agarwood revolution in assam-tripura villages – Providing young people with a possibility to make crores Agarwood farming in villages of Assam and Tripura is gaining popularity in the rural setting since 2015. It has become a crores of rupees and a source of employment to thousands of youth as the international market prices are high because of the government policies and modern inoculation technology. Be aware of the whole picture, issues, and prospects. Agarwood ( Aquilaria malaccensis ) …
- Remote villages in Assam and Tripura have emerged as national leaders in growing aromatic wood called agarwood (local name agar) over the past decade. Expensive international market, limited land requirement and high long-term returns—all three have attracted rural youth to this niche crop.
- What is Agarwood?
- Agarwood is the dark resinous portion of the Aquilaria malaccensis tree, the oil (ud or rohi) extracted from its wood is sold at a diamond-like price in the perfume, attar and pharmaceutical industries.
- Reasons for growing cultivation
- High price: The dark resinous wood obtained from a mature tree can fetch lakhs of rupees in the international market.
- Compact cultivation: Planting possible at a distance of 1-1.5 feet; small-holders can also benefit.
- Long but safe capital: Maturity in 8-10 years, then huge lump sum returns.
- Government Policies: Tripura’s Agarwood Policy2021 and Assam’s Agarwood Promotion Policy2020 opened up avenues for plant distribution, registration and market access.
- azpdf.net
traffic.org - Technological Advancement: Artificial inoculation has led to high-quality resin production in 3-4 years.
- Role of Youth
Rural Entrepreneurship: Educated youth started group orchards, nurseries and oil distillation units. - Employment Generation: Man-days increased at every stage—planting, care, harvesting and processing.
- Digital Marketing: Direct access to Middle East and South East Asia through online auctions and social commerce.
- Government Support
Tripura 2021 Policy targets ₹20 billion turnover in 5 years. azpdf.net - Assam to get ₹1 lakh incentive for marginal farmers planting 3,000 saplings under 2020 policy.
- indiatimes.com
- Centre gives green signal to export of artificially-propagated agarwood and oil in 2024‑25.
- a2ztaxcorp.net
- Technological innovations
Rapid development of resin in wood by controlled fungal infection through micro-injection. - Identification of suitable land through lidar-based resource mapping.
- azpdf.net
- Economic impact
Agarwood chip market in Asia-Pacific is projected to reach ~USD16.5bn by 2034, with Assam-Tripura likely to become a major stakeholder. - m.economictimes.com
- Challenges
CITES rule-compliance and export permit process still complex. - Fake oil/wood threatens market reliability.
- Climate risk and forest fire hazards.
- Conclusion
With information, policy support and technology, agarwood farming can take Assam-Tripura’s rural economy to new heights in the next decade—just as tea did.
Agarwood revolution of Assam-Tripura:s Transforming Economy of North East India
- Bright Future of Agar Industry (Assam Focus) by Agar Research Institute (ARI)
The consumption and export of Agarwood has assumed a different dimension, in the context of Assam-Tripura. Assam especially is becoming an up and coming center to this industry. This is due to five reasons which are mainly as follows: - The interest of the new generation increases
- The farmer-entrepreneurs are changing the form of conventional farming into a new form of business. They are introducing new channels of sales by reaching the international market with only relevant links with the help of social media and e-commerce sites.
- Contemporary vaccinating methods
- Previously, formation of the resin used to require 10-12 years. Artificial fungal inoculation has now yielded high quality agarwood within 3-4 years and has led to increment in productivity as well as inflation in profitability.
- Support by the policy of the government
- Assam Agarwood Policy- saplings distribution, training and soft finance.
- Under ODOP (One District One Product), Golaghat district is being announced as Agar Hub and innovation-based infrastructure is being given.
- New job and investment opportunities
- There are thousands of both direct and indirect jobs generated along with farming, harvesting, processing, package and international marketing. This is offering sustainability to the rural economy.
- High international demand
- There is also a permanent market demand of pure agar oil and chips in the perfume industry of the Middle East up to China-Japan-Korea. In case Assam fulfils the quality criterion, there can be a large leap in foreign exchange earnings.
Agarwood (Agar) Industry in Assam: Towards an Economic Revolution
- Agarwood Industry Assam Towards an Economic Revolution
Golaghat district of Assam is recently being marked to be a hub of agarwood production by the ODOP (One District, One Product) scheme. This shows that district is at the centre stage of the agar wood industry of the state. - More Suitable Zones of Agarwood Farming
Other North-East Indian states like Manipur, Mizoram, Tripura besides Sylhet in Bangladesh are also not far behind due to their very conducive environment in terms of climate and soil to grow agar. - Assam Government policy and Investment
The state government has designed the specific Agarwood Policy of strategic development of the agarwood industry. By this not only production is being encouraged but also processing, value addition as well as speed is being underlined. - Current Benefits of Agar to government (Government)
The concrete statistics concerning the amount of direct revenue that the state government directly receives as a result of agarwood industry is not currently known. To a large extent, the industry: - instead of creating direct income
- pays huge demeaning consequences on the economy and countryside life of the state
- through processing units and farmers, and traders.
- But there are several main things which should be noted:
- 1. Enormous monetary possibility
Assam government has suggested to put in Rs.50,000 crore as investment in agarwood industry. - Such investment is with an attempt to beef up processes including cultivation, production, processing and export.
- 2. Raftani (export) income
- There is a very high demand of agarwood oil (oudh) in the international market.
- Its largest customers are Saudi Arabia, UAE, Kuwait, Qatar, China, Japan and Korea.
- The price of good quality oil may reach $10 000 to 30 000 on a single liter.
- This provides India with a possibility to make massive transfer of foreign exchange.
- 3. Revenue Collection
The industry provides indirect income to the government in form of licenses, taxes on exportations of goods, customs tariffs, trade commissions etc. - Also, cluster development schemes also contribute to the MSME sector.
- 4. Creation of local jobs
All the processes in the agarwood cultivation, care, harvest, oil extraction and packaging employ thousands of people. - This assists in curbing unemployment in the rural and generates prosperity in the area.
- 5. Investment in the economic development of the state Involvement in the economic growth of the state
The long-term development of the agarwood sector is bearing constant fruits to the gross domestic product (GSDP) of Assam. - It is shifting the state to an export economy based on plantation.
- Though no one can tell how much direct income the government gets in the industry annually, but it has been quite evident through the policy initiatives, investments, the world demand, and the involvement of the rural communities that indeed in the future years to come, the agar wood industry will emerge as a leading backbone of the Assam economy.
- Agarwood Industry Assam Towards an Economic Revolution
Golaghat district of Assam is recently being marked to be a hub of agarwood production by the ODOP (One District, One Product) scheme. This shows that district is at the centre stage of the agar wood industry of the state. - More Suitable Zones of Agarwood Farming
Other North-East Indian states like Manipur, Mizoram, Tripura besides Sylhet in Bangladesh are also not far behind due to their very conducive environment in terms of climate and soil to grow agar. - Assam Government policy and Investment
The state government has designed the specific Agarwood Policy of strategic development of the agarwood industry. By this not only production is being encouraged but also processing, value addition as well as speed is being underlined. - Current Benefits of Agar to government (Government)
The concrete statistics concerning the amount of direct revenue that the state government directly receives as a result of agarwood industry is not currently known. To a large extent, the industry: - instead of creating direct income
- pays huge demeaning consequences on the economy and countryside life of the state
- through processing units and farmers, and traders.
- But there are several main things which should be noted:
- 1. Enormous monetary possibility
Assam government has suggested to put in Rs.50,000 crore as investment in agarwood industry. - Such investment is with an attempt to beef up processes including cultivation, production, processing and export.
- 2. Raftani (export) income
- There is a very high demand of agarwood oil (oudh) in the international market.
- Its largest customers are Saudi Arabia, UAE, Kuwait, Qatar, China, Japan and Korea.
- The price of good quality oil may reach $10 000 to 30 000 on a single liter.
- This provides India with a possibility to make massive transfer of foreign exchange.
- 3. Revenue Collection
The industry provides indirect income to the government in form of licenses, taxes on exportations of goods, customs tariffs, trade commissions etc. - Also, cluster development schemes also contribute to the MSME sector.
- 4. Creation of local jobs
All the processes in the agarwood cultivation, care, harvest, oil extraction and packaging employ thousands of people. - This assists in curbing unemployment in the rural and generates prosperity in the area.
- 5. Investment in the economic development of the state Involvement in the economic growth of the state
The long-term development of the agarwood sector is bearing constant fruits to the gross domestic product (GSDP) of Assam. - It is shifting the state to an export economy based on plantation.
- Though no one can tell how much direct income the government gets in the industry annually, but it has been quite evident through the policy initiatives, investments, the world demand, and the involvement of the rural communities that indeed in the future years to come, the agar wood industry will emerge as a leading backbone of the Assam economy.
Spread of Agarwood cultivation in North Tripura district of Tripura: Kadamtala becomes the center
- Agarwood Cultivation in North Tripura District: Kadamtala takes the center stage
- The Agarwood cultivation is most popular in the whole state in the North Tripura district, and in particular, in Kadamtala block (including North Phulbari Village). The region is the region of Tripura where the Agar trees are densely located.
- What makes North Tripura a good place to farm Agar?
- Soil quality: It is the opinion of the researchers that the soil in this area is very accommodative to the growth of the Agar trees.
- Climate: This tree is grown in sub-tropical climate conditions and balanced rainfall and temperature are beneficial in the growth of this tree.
- Local experience: Villagers have known this tree traditionally over the years and this makes cultivation more efficient.
- Agar potential in Tripura
- Even though the Agar trees can be cultivated in most of the districts of Tripura, cultivation of Agar trees in other regions is not as high as it is in North Tripura. However, this industry is catching up in other districts as well with the government policy and encouragement.
- Policy and Institutional Support
Tripura Agarwood Policy 2021
The state government has implemented the “Agarwood Policy 2021”, which aims to: - Fodder distribution and plant production
- Training and technical assistance to farmers
- Promoting exports
- Establishment of processing units
- Formation of Tripura Agar Board
The “Tripura Agar Board” has been established in the state, which: - Identification of the area of interest
- Certification and quality control
- Works to attract investors
- Impact and future direction
Farmers’ enthusiasm: With the new policies, small and marginal farmers are also getting attracted to this cash crop. - Economic benefits: International demand for agar oil and wood is giving better income to farmers.
- Employment: Employment opportunities have increased in planting, harvesting, oil extraction and packaging at the local level.
- Conclusion
- North Tripura district has emerged as a role model in the field of agarwood cultivation. The Tripura government’s proactive policy, use of local resources and the interest of farmers—all these have taken this industry to new heights.
- If Tripura continues to invest and innovate in this direction, the state can become India’s leading agarwood exporter in the coming years.
Assam-Tripura's Agarwood Boom: New policies, increased export quota and target of ₹2,000 crore by 2025
- Agarwood Boom of Assam-Tripura: New policies, higher export quota and 2025 2000 crore target
- The agarwood industry has been taken off the ground by the Tripura State Agarwood Policy 2021 and the Assam State Agarwood Promotion Policy 2020. DGFT has determined that the export quota of Tripura will be 22,500 kg chips/powder and 1,047 kg oil and the quota of Assam will be 1,19,400 kg chips/powder and 5,560 kg oil on and after 2025. The trade via international trade centres at Golaghat and Kadamtala is likely to boost the trade to 50,000 crores. Examine the whole report.
- agarwood-assam-tripura-export-policy-2025
- Agarwood Export Quota and Tripura Agar Policy2021, Assam Agarwood Promotion Policy2020, DGFT Notification52/2024‑25, Golaghat International Agar Trade Centre, Kadamtala Agar Market, Oud Oil, CITES License, Agarbatti Industry, Aquilaria malaccensis
- Both the northeastern states, Assam and Tripura are making swift plans to bring the agarwood industry in order. These states are the center of the second green revolution due to the updated export policy in 2024-25 and the investments of the state level.
- Tripura Roadmap
Agarwood Policy 2021 aims to contribute an addition of 2000 crores to the state economy by 2025. - Higher export quota According to the notification of DGFT (20 January 2025): 22,500 kg chips/powder and 1,047 kg oil annually.
- CITES Approval Tripura is an international CITES approved country to export Agar oil.
- Dedicated Infrastructure Agar marketing at Kadamtala (North Tripura) and Agar International Trade and Research Centre (AITRC) being set-up.
- Value Addition Local business persons are establishing units of perfume and agarbatti manufacturing.
- Assam Strategy
Initiatives Highlights
The Agarwood Promotion Policy 2020 India: this is the first policy framework dedicated to agarwood in India; streamlines the process of harvesting, transport and trade.
sentinelassam.com
One District One Product (ODOP Hub Golaghat District Agarwood Centre). - International Trade Centre High-end trade centre being constructed at Golaghat; estimated turnover of 50, 000 crore per year.
- Export Quota (DGFT2025) 1,19,400 kg chips/powder and 5560 kg oil every year.
- Research & Patents State offers up to 10 lakh rupees on registered patents and processed R&D.
- Possible Economic Effect
Forex: Competitive advantage in markets such as Middle East, Japan and Korea in exporting high grade Oud oil in Tripura-Assam. - Rural employment: Planting, inoculation, oil extraction 1000s of direct jobs.
- Livelihood Security: One tree can give income of lakhs of rupees in the long-term and decrease the risk appetite of small farmers.
- The Problems and the Resolutions
Possible Solution
CITES records complicated State-based one-stop export help desk
Fake oil/chips market Traceability of blockchain and tagging of GI System
Climate threats Miniature crop insurance and micro-irrigation plans
Pure and Pristine Indian Oud Oil and Oud Wood./ oud oil manufacturers in india
Agarwood Sector Status by State (India, 2025)
| State | Current Snapshot (2025) | Near-Term Target | Why It’s Important |
|---|---|---|---|
| Assam | ≈ 100 million trees; DGFT quota: 119,400 kg chips + 5,560 kg oil/year; Assam Agarwood Promotion Policy 2020 in effect. | ₹50,000 crore investment and Golaghat International Trade Center by 2025–26. | India’s agarwood capital; organized processing aiming for global leadership. |
| Tripura | DGFT quota: 22,500 kg chips + 1,047 kg oil/year; Policy 2021; Kadamtala market and AITRC in progress. | ₹2,000 crore annual turnover by 2025; World Bank collaboration. | Kadamtala becoming “green gold” zone; CITES makes export easier. |
| Manipur | Uses national CITES quota; high natural resin rate; informal processing. | License-based processing 2025–27; state rules underway. | Once formalized, can link Northeast to export networks. |
| Meghalaya | Govt-supported training (2024); 1 ha = ₹2 crore in 15 years. | Traceability system and policy by 2026. | Reduces per-tree cost and improves product quality. |
| Mizoram | Hill ecosystem suited; 2024 amendment allows licenses. | 500-ha cluster under Bamboo Mission by 2026. | Utilizes hilly terrain for forest-based income. |
| Nagaland | Prove-N1 biotech pilot, farmer livelihood scheme. | 200 plantations (2024–25); DGFT quota access. | Training-focused, high-return model for smallholders. |
| Arunachal Pradesh | Community plantations in Lower Dibang & Sissen; forest recovery. | 1 million saplings by 2027; cooperative distilleries. | Forest revival + tribal income = “Forest to Finance.” |
Global Agarwood Production & Market Value (2025
Global Agarwood Production & Market Value (2025)
Who grows, trades and profits from “liquid gold” worldwide
| 🌍 Country | 🌱 Annual Production (Est.) | 💰 Market Value (Revenue) | 📈 Profit / ha or CAGR | 🇮🇳 Compared with India |
|---|---|---|---|---|
| Indonesia | ~700 t chips (1990s peak, lower now) | ≈ USD 204 M / yr | ≈ USD 6.5 /tree; 0.017–0.2 % oil yield | Largest exporter; India trails in volume, leads in oversight |
| Vietnam | ~500–600 t chips | Shares Asia‑Pac oil market (≈ USD 33 M) | Top‑grade “kynam”, up to USD 25 M/kg oil | Higher volume; India ahead in tech‑centric plantations |
| Malaysia | > 3,000 t chips exported (2019) | ≈ USD 110 M (2019) | 7.4 % CAGR (chips, 2024‑31) | Greater recognition & quality control |
| Thailand | ~200–300 t chips; biotech driven | Part of USD 509 M global oud market (2024) | High ROI (biotech); 6.35 % CAGR (oil) | Lower output; superior branding |
| Cambodia / Laos | ~100–150 t chips (*A. crassna*) | Shares SEA oil market (~ USD 33 M) | Traditional; ≈ USD 17.8 /mL oil | Lower volume; mostly wild sourcing |
| China | ~100–200 t chips (plantation + wild) | Part of Asia‑Pac oil market | High domestic demand; 5.7 % CAGR | Large consumption, limited exports |
| India | ~100 M trees; 140,960 kg chips + 6,607 kg oil (quota 2025) | ≈ USD 4 M (oil) | 0.01–0.2 % oil yield; ≈ USD 17.8 /mL | — India baseline — |
| Bangladesh | ~50–100 t chips | ≈ USD 5–10 M | Traditional, low yield | Smaller scale; less regulated |
| Myanmar | ~100–150 t chips | Part of SEA oil pool | High illicit trade share | Lower scale; sustainability issues |
| Bhutan | ~10–50 t chips | ≈ USD 1–2 M | Low ROI; traditional | Far smaller; limited commerce |
| Philippines | ~50–100 t chips | ≈ USD 5–10 M | Low yield; emerging plantations | Smaller; growing interest |
| Papua New Guinea | ~50–100 t chips (*Gyrinops spp.*) | ≈ USD 5–10 M | 5–6 % CAGR; wild harvest | Smaller; largely wild‑sourced |
| Sri Lanka | ~20–50 t chips (plantations) | ≈ USD 2–5 M | 5.7 % CAGR; sustainable | Smaller; stronger on sustainability |
| Brunei | ~10–30 t chips | ≈ USD 1–3 M | High‑quality resin, biotech inoculation | Niche, premium focus |
| Singapore | Negligible; re‑export hub | Part of USD 509 M global trade | High ROI via trade margins | No cultivation; logistics powerhouse |