India Maps Global Export Push for Northeast Agarwood Industry

Assam accounts for roughly 114.3 million trees and Tripura another 15.15 million, while agarwood resources are also found across Manipur, Nagaland, Meghalaya and other northeastern states.

India is preparing to expand its presence in the global agarwood and oud oil market, with the government calling for greater private investment, modern processing facilities and stronger international branding to ensure that more economic value from the prized aromatic wood remains with growers and communities in the Northeast.

The strategy was discussed at the Industry Summit on Prospects & Export of Agarwood Oil from India in New Delhi, organised by the Chemicals and Allied Products Export Promotion Council (CHEMEXCIL) with the Ministry of Development of North Eastern Region (MDoNER).

Northeast Holds Vast Majority of Agarwood Resources

India has an estimated 139.89 million agarwood trees, with about 96.6% located in the North Eastern Region. Assam accounts for roughly 114.3 million trees and Tripura another 15.15 million, while agarwood resources are also found across Manipur, Nagaland, Meghalaya and other northeastern states.

Agarwood is a highly valued resinous wood from Aquilaria species that is processed into products including aromatic chips and oud oil, which command demand in premium perfumery, incense and luxury fragrance markets. Gulf countries remain important buyers, while demand for high-value agarwood products is expanding across Europe, the United States and East Asia, creating opportunities for Indian producers to move beyond supplying raw material.

Government Calls for Investment and Local Processing

Minister of State for Development of North Eastern Region Sukanta Majumdar urged businesses to invest in modern extraction and distillation technologies, develop internationally recognised brands and build commercial partnerships capable of taking Indian agarwood into global markets.

In a message delivered during the summit, Union Minister Jyotiraditya Scindia called for long-term purchasing relationships with Farmer Producer Organisations and cluster-based groups so growers have greater confidence in future demand.

He also pushed for more processing and distillation facilities within the Northeast, alongside technology partnerships, scientific cultivation, certification, traceability and origin branding that could help Indian oud secure premium prices internationally. The broader ambition is for the Northeast to become recognised not simply as a source of agarwood but as a centre for its science, processing, quality standards and branding.

New Roadmap Targets Higher-Value Exports

A Roadmap for Agarwood Export Promotion from the North Eastern Region was released during the summit, setting out coordinated measures for government agencies, northeastern states, export councils and industry participants to improve market access and compliant trade. Work already underway includes increasing export quotas, digitising Certificates of Origin, mapping agarwood resources in Assam and Tripura and developing standards for agarwood oil. GI registration efforts and the validation of inoculum suppliers are also being pursued.

An Agarwood Export Promotion Cell established in May 2026 has brought CHEMEXCIL and SHEFEXIL together with the Ministry of Commerce for focused exporter support and market development. With government mechanisms taking shape, the next stage places greater emphasis on industry investment capable of turning the Northeast's substantial natural resource base into sustainable businesses, higher-value exports and stronger livelihoods for local producers.