Assam cements position as India’s agarwood powerhouse, eyes global leadership

Assam has solidified its position as India’s leading hub for agarwood, housing an estimated 114.3 million trees, accounting for 82% of the country’s total agarwood resources. This was highlighted during the Advantage Assam 2.0 summit on February 26, where industry leaders and government officials emphasised the state’s growing role in the global agarwood trade.

 

Islamnagar in Hojai district has become India’s largest agarwood trading centre, witnessing a daily turnover of nearly Rs 1 crore. With a highly skilled workforce specialising in agarwood chipping and processing, Assam enjoys a competitive edge in both domestic and international markets.

 

The Central government has significantly increased the export quota for agarwood, now allowing 151,080 kg of chips and 7,050 kg of oil to be exported annually. This expansion presents Assam with a major opportunity to boost exports and establish itself as a primary supplier in the global market.

 

Assam is the first Indian state to introduce a dedicated agarwood policy, further strengthening its leadership in the sector. Golaghat district has been designated as the “One District One Product” (ODOP) hub for agarwood, with a focus on enhancing exports and supporting local artisans. Plans for an International Agarwood Trade Centre in Golaghat aim to provide farmers with vital knowledge on improving production and sustainable practices.

 

Jeherul Islam, speaking at the summit, underlined the state’s commitment to promoting indigenous products internationally. “Agarwood cultivation is highly profitable, with potential earnings of Rs 50-60 lakh per bigha,” he stated. To drive this growth, the government has allocated Rs 50,000 crore for agarwood plantation development, processing, and value addition.

 

Despite being a regulated and endangered species, Assam is prioritising sustainable development and responsible trade. Investment opportunities span contract farming, plantation for carbon credits, quality planting material development, agar inoculation manufacturing, and processing for perfumes, incense, tea, and FMCG products.

 

To encourage innovation, the state is offering full sponsorship for agarwood product patenting, along with research and training support of up to Rs 10 lakh. Farmers and traders will also receive 100% sponsorship for skill development. Marketing assistance includes subsidies for trade fairs and online sales platform development.

 

Investors can further benefit from the Assam Industrial & Investment Policy 2019 and the UNNATI Scheme 2024, which provide incentives for businesses. These initiatives aim to propel Assam’s agarwood industry to new heights, reinforcing its status as a key global player in the sector.