Centre Launches ₹80 Crore Agarwood Value Chain Scheme to Boost Northeast Economy

₹80 Crore Agarwood Value Chain Scheme Launched in Tripura

Union Minister for Development of North Eastern Region (DoNER) and Communications Jyotiraditya Scindia laid the foundation stone of the ₹80 crore Agarwood Value Chain Development Scheme at North Fulkabari in Tripura , signalling a major policy push to strengthen the traditional agarwood economy of the Northeast. The initiative aims to enhance farmer incomes, expand exports, and position Tripura as a global centre for agarwood-based products .

Boosting the Traditional Agarwood Economy

Addressing farmers and stakeholders, Scindia said the project aligns with the Prime Minister’s vision of a developed, self-reliant Northeast . He noted that Tripura and Assam together account for the bulk of India’s agarwood production , yet the sector has remained under-scaled and under-integrated with global markets.
The new scheme seeks to change this by combining infrastructure, technology, and market access , transforming agarwood from a largely informal activity into an organised export-driven industry.

End-to-End Value Chain Development

The project focuses on building a complete value chain , starting from agarwood trees grown on farmers’ land to high-value finished products such as agarwood oil, incense, and perfumes sold in international markets.
Two Central Processing Centres (CPCs) will be established—one in Golaghat (Assam) and another in Tripura . These centres will handle processing, quality control, branding, and marketing, helping eliminate middlemen and ensuring that farmers receive a larger share of final value realisation .

GI Tag, Export Push and Digital Platforms

The Minister highlighted several reforms aimed at global competitiveness. The process to secure a Geographical Indication (GI) tag for agarwood is underway, which would protect its regional identity and enhance export credibility.
Export limits have been sharply expanded, with agarwood chip exports increased from 25,000 kg to 1.5 lakh kg and agarwood oil exports from 1,500 kg to 7,500 kg . Regulatory approvals and permissions are also being integrated on digital platforms , enabling farmers and cooperatives to directly connect with international buyers.

Imporatnt Facts for Exams

• Agarwood is a rare aromatic resin used in perfumes, incense, and traditional medicine

• Around 90% of India’s agarwood trees are found in Northeastern states

• GI tags help protect region-specific products and enhance export value

• The scheme supports ODOP (One District One Product) and Vocal for Local objectives

Tripura’s ‘Local to Global’ Opportunity

Calling the Fulkabari agarwood cluster a strong example of ‘Local to Global’ growth , Scindia said the scheme could raise Tripura’s agarwood production capacity by nearly 50% . He projected that the state’s agarwood sector could achieve an annual turnover of ₹2,000 crore within three to four years , driven by direct buyer–seller meets, global branding, and coordinated support from the Centre and the state government.