Policies in place to lift Assam's agarwood industry, perfume entrepreneur details initial steps

New Delhi [India], November 27 : Trade in "liquid gold" Agarwood, among the most commercially prized plant species globally, is now becoming a lucrative venture in Assam, the land famed for its tea plantations, after the ruling BJP government lifted legal hurdles.
In 2020, the BJP government in the State legalised the trade of oudh or agarwood and its derivatives, aiming to provide a new avenue for revenue.
Perfumes and other derivatives of agarwood are highly sought after in domestic markets as well as in the Arab countries and beyond.
The Assam government believes that this sector has vast potential to generate employment and revenues if harnessed properly.
Assam Chief Secretary Ravi Kota addressing an event in Guwahati recently noted that, if developed systematically, agarwood can be the "next tea and crude oil" for the north eastern State.
The plant species Aquilaria malaccensis, locally known as 'Agar' or 'Xashi' has been in use for over 2000 years and is valued for its best-quality aroma. It is also used for medicinal and religious purposes has a high demand within Assam and the rest of India.
Agarwood chips, semi-solid gel, and agarwood oil are some of the popular derivatives of the plant, which typically sell at premium prices. In the international market Agarwood chips has values as high as Rs 2, 50,000 per kg as estimated by the agarwood promotion policy 2020 of Assam,
According to estimates, the global agarwood chip market is estimated to grow to USD 16.5 billion (Rs 1.35 lakh crore) by 2034.
Prior to 2020, felling and trading agarwood of the endangered tree species was illegal, and law enforcement agencies used to monitor the movements of agarwood, only to be seized. The Agarwood Promotion Policy 2020 now ensures plantation, harvesting, processing, transit, and trade seamlessly, without any fear of law enforcement agencies.
At the ongoing India International Trade Fair 2024 in the national capital's Pragati Maidan, a stall showcasing oudh products from Assam was thronged by visitors.
Jehirul Islam, Chairman of the All Assam Agarwood Planters and Traders' Association, which has over 300 agarwood planters told ANI, "For the first time, the government has ensured that agar tree felling doesn't need permission. Also, agar as a tree has been brought out of the ambit of forest produce through the 2020 policy"
Considered as among the brains behind making the agarwood business legal, Islam was key in guiding and advising the state government to legalise agarwood business through a policy change. "The government's support is immense this time," he said.
The entrepreneur from Assam who returned to Assam in 2008 from West Asia soon started research and development on agarwood in his home state. He subsequently patented 'System for Producing Agarwood Oil and Method in India'.
His 'MJI Perfumes,' said to be the first 'Made in Assam' perfume brand was the centre of attractions at the ongoing 43rd Trade Fair.


"Earlier, the youth were afraid to get involved in the agar business. Today, many youngesters are getting into it since the trade has been legalised by the government of Assam. More youth must get themselves involved in the agar business to become self-reliant," said Jehirul Islam.
Just like youth in Assam took to planting tea back in the day, they are now increasingly taking up agarwood plantations.
"I know the real worth of agar in the international market. So, I urge everyone to plant an agar tree if they have land. If 4,320 trees are planted on a hectare of land, they will easily earn about Rs 4.32 crore after 15-16 years. Agar of Assam has a lot of value in the international market," noted Jehirul Islam.
Under the Assam government policy announced in 2020 and that came into effect in 2021, with an initial validity of five years, the Assam government is providing incentives for nursery creation, distributing saplings, monetary incentives for cultivation and processing, incentives for research, and training and marketing.
Now, the Assam government intends to take agar plantations to the masses, and in that endeavour, it is encouraging growers to plant such trees on their farms and backyards.
The Assam government has vigorously implemented the Assam Agarwood Promotion Policy 2020. Under the policy, a state-of-the-art international trade centre for agar business is coming up in Golaghat district, which, according to Jehirul Islam, will become operational next year.
This upcoming trade centre aims to provide growers direct access to a global market, securing better prices and expanding their businesses without relying heavily on intermediaries.
"We had been demanding the setting up of a trade centre of international standard for agar business. It augurs well that the government has accepted our demand and laid the foundation stone of the trade centre at Golaghat in 2020. Assam will be able to transact business to the tune of a whopping Rs 50,000 crore annually when this international trade centre comes up," Jehirul Islam said.
With its first licensed manufacturing-cum-retail store in Guwahati launched earlier this year, Jehirul Islam is planning to set up outlets in various metros across India.
Jehirul Islam said export orders have also started to pour in, and it is expected to pick up in the days to come.
"Our goal is not only to create exceptional fragrances but also to promote the cultural and natural heritage of Assam and India as a whole," Islam asserted.
Golaghat, Jorhat, Sibsagar, and Hojai districts account for over 90 per cent of agar trees in Assam, as per a study conducted by the state government and Green Initiatives Certification and Inspection Agency Pvt. Ltd.
October to April is preferred for harvesting agarwood to get maximum extraction of agar oil. From May until August, harvesting should not be preferred, as it is the time for flowering and fruiting of agar.