India Boosts Agarwood Exports: New Quotas, Artificial Propagation & Market Potential

India’s Directorate General of Foreign Trade (DGFT) has significantly increased export quotas for artificially propagated agarwood products, presenting new opportunities for exporters.

Key Updates in Agarwood Export Quotas

🔹 Increased Export Limits:

• Agarwood chips & powder: Raised from 25,000 kg to 151,080 kg annually.

• Agar oil: Increased from 1,500 kg to 7,050 kg annually.

🔹 States Benefiting:
Assam, Tripura, Manipur, Nagaland, Karnataka, Kerala, and Meghalaya—key regions for agarwood cultivation.

🔹 Regulatory Compliance:

• Certificate of Origin from forest authorities.

• CITES Permit for sustainable trade.

• Stock verification & product photographs required for exports.

Artificial Propagation of Agarwood

Artificial propagation is revolutionizing the agarwood industry by enabling controlled resin formation in Aquilaria trees, ensuring faster production and consistent quality. Here are the key techniques:

1. Tissue Culture Method

• Regeneration: Agarwood explants are cultivated in controlled environments.

• Microbe Inoculation: Fungal strains induce resin secretion.

• Resin Formation: Trees develop secondary metabolites, forming agarwood.
  ✅ Advantages: Enables mass production in just 3–6 months, unaffected by environmental factors.

2. Fungal Inoculation

• Process: Specific fungal strains (Fusarium sp., Botrysphaeria rhodina) mimic natural infections.
  ✅ Advantages: Eco-friendly and effective for localized resin formation, though quality may vary.

3. Mechanical Wounding

• Technique: Physical injuries stimulate resin secretion.
  ⚠️ Limitations: Labor-intensive with long incubation times.

4. High-Pressure Injection

• Method: Agarwood-inducing agents are injected into tree xylem for uniform resin formation.
  ✅ Benefits: Produces high-quality agarwood efficiently.

Agarwood Supply Chain: From Plantation to Export

The supply chain for artificially propagated agarwood involves:

1️⃣ Cultivation: Agarwood trees are grown in India, Southeast Asia, and China.
2️⃣ Induction: Artificial methods are applied to stimulate resin formation.
3️⃣ Harvesting: Trees are cut once resin has sufficiently formed.
4️⃣ Processing: Wood is ground, distilled, or extracted into chips, powder, or oil.
5️⃣ Export: Products are shipped to Vietnam, Saudi Arabia, UAE, India, and beyond.
6️⃣ End Use: Used in perfumes, incense, and traditional medicine globally.

India’s Position in the Global Agarwood Market

• India ranks 3rd in global agarwood exports, with 887 shipments (~5% market share).

• Major importers: Vietnam (17%), India (16%), Saudi Arabia (12%).

• Growing demand in the Middle East & East Asia for religious, medicinal, and luxury applications.

Economic & Environmental Impact

✅ Strengthens local economies, creating jobs and boosting farmer incomes.
✅ Supports sustainable trade practices while expanding India’s export footprint.

With advanced artificial propagation techniques and increased export quotas, India is poised to become a global leader in high-quality agarwood production and exports.

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