Assam gets export quota for agarwood products, government eyes sectoral expansion

Assam is set to give a fresh push to agarwood cultivation and related business activities, with the state government working to make the sector more accessible to farmers and expand its export potential, state minister Bimal Borah said.

Speaking on the role of agarwood in strengthening Assam’s economy, Borah said the government has constituted a task force to examine issues related to agarwood farming and business activities in the state.

He said the government plans to make agarwood cultivation more accessible and promote the development of industries linked to the sector. According to Borah, agarwood farming had previously faced regulatory and administrative difficulties, creating a perception among growers that the activity could attract legal complications.

“The message now is that people can take up agarwood cultivation freely within the rules,” Borah said, while stressing the need to facilitate legitimate cultivation and business activities.

The minister also highlighted difficulties faced by traders in exporting agarwood products from Assam. He said the state has now received the required export quota, which would enable the legal export of agarwood products.

Borah said the Agriculture, Forest and Industries departments would work jointly to promote agarwood cultivation and develop downstream industries in the state. The coordinated approach, he said, could help build a stronger agarwood-based economy while creating opportunities for farmers, traders and businesses.

On the export of agarwood chips, Borah said exporters require approval from the Directorate General of Foreign Trade (DGFT). He also questioned claims about the volume of agarwood being exported from Assam.

Borah alleged that some traders show agarwood as having been imported from other countries, process it at locations such as Barnihat and subsequently re-export it. He claimed that only around 112 kg of agarwood chips had been exported from Assam.

The minister also levelled allegations against businessman and politician Badruddin Ajmal in connection with the agarwood trade, alleging his involvement in illegal agarwood activities. The allegation was made by Borah, and no supporting evidence was provided in the remarks available for this report. Ajmal's response to the allegation was not available.

The government's renewed focus on agarwood comes amid efforts to expand cultivation, improve regulatory access and promote legal exports of the high-value forest-based product.

Borah said greater coordination among the Agriculture, Forest and Industries departments would be important for developing agarwood cultivation and associated industries in Assam.