Assam moves to streamline agarwood industry, boost exports and downstream manufacturing

Guwahati: Assam has initiated a major push to streamline and expand its agarwood industry, with the state government proposing a series of measures aimed at simplifying regulations, strengthening cultivation and processing, and facilitating exports to international markets.

The decisions and recommendations were discussed at the first meeting of the Assam Agarwood Task Force and Agarwood Stakeholders, held at the Assam Administrative Staff College in Khanapara.

The meeting was led by Industries and Commerce Minister Bimal Borah, Finance and Forest Minister Jayanta Mallabaruah and Agriculture Minister Pijush Hazarika. Chief Secretary Ravi Kota, Special Chief Secretary M.K. Yadava, Additional Chief Secretary J.B. Ekka and senior government officials attended the meeting.


The meeting brought together agarwood growers, processors, entrepreneurs, traders and exporters, besides scientists and researchers.

Representatives from the Ministry of DoNER, CHEMEXCIL, FFDC, CSIR-NEIST, Rain Forest Research Institute, the Fragrance & Flavour Association and Sugandh Vyapar Sangh also participated.

A key proposal was to establish a systematic mechanism for registering agarwood plantations cultivated outside forest areas, accompanied by an awareness campaign to ensure that growers understand the regulatory requirements.

The stakeholders also proposed removing agarwood chip and oil processing units from the conventional Wood-Based Industry framework, arguing that cultivated agarwood and its processing have distinct characteristics and requirements.

Another recommendation was to simplify the issuance of Certificates of Origin for agarwood cultivated outside forest areas and beyond the prescribed forest proximity zone. In such cases, the certificate could be issued through the District Commissioner or Circle Officer instead of requiring the District Forest Officer-level process in every instance.

The meeting also discussed removing or reviewing registration fees imposed on cultivated agarwood trees by the Forest Department to encourage farmers to register plantations and bring more of the sector into the formal economy.

The task force proposed establishing agarwood chip and oil testing facilities at the district level to improve quality assessment and authentication while reducing delays in trade.

Stakeholders also called for a time-bound mechanism for CITES and Directorate General of Foreign Trade permissions, with eligible applications proposed to be processed within 15 days, subject to fulfilment of statutory requirements.

The measures are aimed at creating a transparent and predictable export system that would allow genuine growers, processors and exporters in Assam to access international markets more efficiently.

The meeting also felicitated Jehirul Islam, founder of MJI Group, for undertaking Assam’s first official export of agarwood chips. He was recognised for facilitating the export of a reported 112-kg consignment of agarwood chips to international markets, marking an important milestone in the state’s efforts to build a formal agarwood export ecosystem.

The stakeholders recommended that the Centre consider stopping or substantially restricting imports of agarwood, agarwood chips, oil and related raw materials from outside India, subject to national laws, international obligations and environmental safeguards.

The proposal is intended to strengthen India's domestic agarwood industry, reduce dependence on imported material and encourage greater investment in cultivation and processing. Stakeholders also stressed the need for safeguards against illegal harvesting, smuggling and market disruption.

The government plans to promote the industry beyond cultivation and primary processing by encouraging investment in high-value downstream sectors such as perfumes, perfumery compounds, essential oils, cosmetics, incense and other agarwood-based products.

National and international manufacturers and investors in these sectors will be encouraged to establish manufacturing and processing units in Assam, with the aim of generating employment, increasing value addition within the state and strengthening the local supply chain.

The task force also decided to move ahead with the immediate inauguration of an International Agar Trade Centre. The proposed centre will provide a dedicated platform for growers, processors, traders and exporters, while facilitating business opportunities, fair pricing and domestic and international trade.

The meeting is expected to lay the foundation for transforming Assam's agarwood sector into a regulated, farmer-friendly, sustainable and globally competitive industry.

With scientific testing, simplified certification, streamlined regulations and faster export procedures, the state government aims to position Assam as a major hub for agarwood and oud-based products.

The broader objective is to create greater opportunities for farmers, indigenous growers, entrepreneurs and exporters while strengthening Assam's position in the global fragrance and perfumery market under the vision of "Born in Assam, Made for the World."