Scindia Launches ₹80 Crore Agarwood Value Chain Scheme In Tripura

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

Strengthening Northeast’s Agarwood Economy

Addressing the gathering, Scindia said the scheme reflects Prime Minister Narendra Modi’s vision for a developed and self-reliant Northeast. He noted that India’s agarwood production is largely concentrated in Tripura and Assam, and the new scheme seeks to unlock the full potential of both states by infusing scale, technology, and global market access into the sector.

End-to-End Value Chain From Farm To Global Markets

The minister said the project will develop the entire agarwood value chain, from trees grown on farmers’ land to finished products such as agarwood oil and perfumes sold internationally. Two Central Processing Centres will be set up, one in Golaghat in Assam and another in Tripura. These facilities will handle processing, branding, and marketing, eliminating middlemen and ensuring farmers receive the full value of their produce.

GI Tag, Export Expansion And Digital Integration

Scindia highlighted several enabling measures to make the sector globally competitive. The process to secure a Geographical Indication tag for agarwood is underway. Export quotas have been increased six-fold, with agarwood chip exports rising from 25,000 kg to 1.5 lakh kg and agarwood oil exports from 1,500 kg to 7,500 kg. Permissions and regulatory processes are being integrated on digital platforms to allow farmers direct access to international buyers.

Imporatnt Facts for Exams

• Agarwood is a high-value aromatic resin used in perfumes and traditional medicine.
• Nearly 90% of India’s agarwood trees are located in the Northeastern states.
• Geographical Indication tags protect region-specific products and boost exports.
• ODOP aims to promote one unique product per district for economic growth.

Tripura’s ‘Local To Global’ Growth Potential

Calling Fulkabari’s agarwood sector a strong example of ‘Local to Global’, ‘Vocal for Local’ and ‘One District One Product’, Scindia said the scheme could raise Tripura’s agarwood production capacity by up to 50%. He expressed confidence that the state’s agarwood market could reach an annual turnover of ₹2,000 crore within three to four years, supported by direct buyer-seller meets and global linkages under the leadership of Chief Minister Manik Saha.