Scindia Launches ₹80 Cr Agarwood Scheme to Take Tripura ‘Local to Global’

Explaining the scope of the scheme, the Union Minister said the ₹80 crore initiative will strengthen the entire agarwood value chain—from trees in farmers’ fields to high-value perfume and fragrance products in international markets.

Union Minister for Development of North Eastern Region (DoNER) and Communications Shri Jyotiraditya Scindia on Saturday laid the foundation stone of the ₹80 crore Agarwood Value Chain Development Scheme at North Fulkabari in Tripura, marking a major push to transform the Northeast’s traditional strengths into globally competitive industries.

The foundation stone ceremony took place on the second day of the Union Minister’s three-day visit to Tripura and Assam. Addressing the gathering, Shri Scindia said the initiative reflects Prime Minister Shri Narendra Modi’s vision of a developed Northeast, driven by targeted, region-specific development. He noted that while several projects were inaugurated on Friday, the agarwood value chain project was launched on Saturday, and the visit will conclude with the inauguration of the ₹280 crore Matabari Tourism Circuit on Sunday.

Highlighting the strategic importance of the sector, Shri Scindia said Tripura and Assam together form the heart of India’s agarwood production, and the new scheme is designed to unlock the full economic potential of both states.

End-to-End Agarwood Value Chain Development

Explaining the scope of the scheme, the Union Minister said the ₹80 crore initiative will strengthen the entire agarwood value chain—from trees in farmers’ fields to high-value perfume and fragrance products in international markets.

Two Central Processing Centres (CPCs) will be set up under the scheme—one in Golaghat, Assam, and the other in Tripura. These centres will support processing, branding, value addition and marketing, while eliminating middlemen to ensure farmers receive the maximum share of value.

GI Tag, Export Boost and Digital Market Access

Shri Scindia said multiple structural reforms are being undertaken to make India’s agarwood sector globally competitive. The process for obtaining a Geographical Indication (GI) tag is underway, while export quotas have been significantly enhanced.

He informed that:

• Agarwood chips exports have been increased from 25,000 kg to 1.5 lakh kg

• Agarwood oil exports have risen from 1,500 kg to 7,500 kg

• Permissions and regulatory processes are being integrated on a digital platform, enabling farmers to directly access international markets

“The objective is clear—remove intermediaries and ensure that farmers benefit directly from global demand,” he said.

Fulkabari as a Model of ODOP and ‘Local to Global’

Describing Fulkabari as a living example of ‘Local to Global’, ‘Vocal for Local’ and ‘One District One Product (ODOP)’, the Union Minister said India has nearly 150 million agarwood trees, with around 90 percent located in the Northeastern states. He added that the scheme is expected to increase Tripura’s production capacity by up to 50 percent.

₹2,000 Crore Turnover Potential for Tripura

Expressing confidence in the sector’s future, Shri Scindia said Tripura’s agarwood industry alone has the potential to generate an annual turnover of ₹2,000 crore within the next three to four years. To ensure direct global linkages, buyer-seller meets are being organised, including a recent interaction with buyers from Qatar, where farmers connected directly with international purchasers.

Towards Atmanirbhar Bharat

Concluding his address, the Union Minister said the scheme is the result of sustained efforts over the past year, guided by the Prime Minister’s emphasis on leveraging each state’s unique strengths. He expressed confidence that, in partnership with the Tripura Government, the agarwood sector will gain global recognition and emerge as a benchmark for Atmanirbhar Bharat.

Shri Scindia also noted that a series of development initiatives are progressing in Tripura. On Friday, he inaugurated and laid foundation stones for projects worth ₹220 crore, reviewed the Agartala Government Inter College project (₹192 crore) and the Maternal & Child Health Hospital (₹200 crore), with the Matabari Tourism Circuit to follow on Sunday.