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Union Minister Jyotiraditya Scindia laid the foundation for an Rs 80 crore agarwood value chain project on January 24, 2026, in North Tripura's Fulkabari area. This includes central processing centers in Tripura and Golaghat, Assam, Tripura, with 1.5 crore agar trees and 96% of India's agarwood in the Northeast.
Significance of agarwood value chain project
- Economic diversification: Moves Tripura beyond traditional crops into high-value global markets.
- Export potential: Agarwood oil is prized in perfumery and pharmaceuticals, fetching premium prices internationally.
- Sustainability angle: Structured cultivation and processing reduce exploitation and ensure long-term resource management.
- Aimed at eliminating middlemen, enhancing branding, and scaling Tripura's agarwood turnover from Rs 100 crore to Rs 2,000 crore annually.
About Agarwood
Agarwood (also called Oud, Gaharu, or Aloeswood) is a rare, fragrant resinous wood formed in Aquilaria trees. It is one of the world’s most valuable natural products, used in perfumes, incense, and traditional medicine.
- Origin: Produced when Aquilaria trees (native to South and Southeast Asia) are infected by fungi such as Phaeoacremonium parasitica.
- Process: The tree secretes a dark, aromatic resin as a defense mechanism, transforming its heartwood into dense, fragrant agarwood.
- Names: Known globally as Oud (Arabic), Gaharu (Malay/Indonesian), Agar (India), and Aloeswood.
Geographic Distribution
- India: Found mainly in Tripura, Assam, and Northeast states.
- Other regions: Bangladesh, Vietnam, Indonesia, Malaysia, and Southern China.
- Habitat: Thrives in tropical evergreen and semi-evergreen forests.
Uses of Agarwood
- Perfume & Incense: Oud oil is one of the most expensive natural fragrances, widely used in Middle Eastern perfumery.
- Religious Traditions: Burned as incense in Hinduism, Buddhism, Islam, and Christianity.
- Traditional Medicine: Mentioned in Ayurveda (Charaka Samhita, Susruta Samhita), Unani, and Traditional Chinese Medicine for its calming and therapeutic properties.
Cultural & Historical Significance
- Ancient Texts: Referenced in Sanskrit poetry by Kalidasa (5th century CE) and Islamic literature.
- Trade History: Agarwood has been traded for thousands of years across Asia and the Middle East, often valued higher than gold.
Conservation & Challenges
- CITES Status: Agarwood-producing species (Aquilaria) are listed under CITES Appendix II, meaning trade is regulated to prevent overexploitation.
- Threats: Overharvesting, illegal logging, and habitat loss.
- India’s Strategy: Sustainable cultivation, scientific innovation, and community empowerment are being promoted.
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