Union Minister for Development of North Eastern Region (DoNER) and Communications, Shri Jyotiraditya Scindia, laid the foundation stone of the ₹80 crore Agarwood Value Chain Development Scheme at North Fulkabari in Tripura on 24 January 2026, marking a major step towards transforming the Northeast’s traditional strengths into globally competitive industries. The initiative aims to strengthen the entire agarwood ecosystem, enhance farmer incomes and position Tripura as a key global hub in the agarwood trade.
Agarwood Sector to Become Model of ‘Local to Global’: Scindia
Addressing the gathering during the second day of his three-day visit to Tripura and Assam, Shri Scindia said that the agarwood sector will emerge as a powerful example of ‘Local to Global’, ‘Vocal for Local’ and ‘One District One Product (ODOP)’ under the leadership of Prime Minister Shri Narendra Modi.
He noted that Tripura and Assam are the backbone of India’s agarwood production, and the new scheme is designed to infuse fresh momentum into the natural strengths of both states, while ensuring that farmers receive fair and full value for their produce.
₹80 Crore Scheme to Strengthen the Entire Agarwood Value Chain
The Union Minister explained that the scheme will focus on developing the complete agarwood value chain, covering every stage from:
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Cultivation of agarwood trees in farmers’ fields
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Scientific harvesting and processing
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Branding and quality enhancement
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Marketing and export to international markets
Two Central Processing Centres (CPCs) will be established under the scheme:
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One in Golaghat, Assam
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One in Tripura (Fulkabari region)
These centres will facilitate professional processing, packaging, branding and marketing, while eliminating the role of middlemen and ensuring direct benefits to farmers.
GI Tag, Export Boost and Digital Platforms to Enable Global Access
Shri Scindia highlighted that several structural reforms are already underway to make India’s agarwood sector globally competitive:
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The process of obtaining a Geographical Indication (GI) tag is in progress
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Export quotas increased six-fold
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Agarwood chips exports raised from 25,000 kg to 1.5 lakh kg
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Agarwood oil exports increased from 1,500 kg to 7,500 kg
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Digital integration of permissions and platforms to allow farmers direct access to global buyers
He emphasized that the clear goal is to remove intermediaries and ensure that farmers directly benefit from international market linkages.
Fulkabari Emerges as Flagship Example of ODOP and Local Enterprise
Calling Fulkabari’s agarwood ecosystem a living example of PM Modi’s development philosophy, the Minister said that the region showcases how local resources, traditional knowledge and modern policy support can combine to create globally competitive products.
He pointed out that India has nearly 150 million agarwood trees, with about 90% located in the Northeastern states. With the new scheme, Tripura’s production capacity is expected to rise by up to 50%, significantly strengthening its position in the global agarwood market.
Tripura’s Agarwood Market Could Reach ₹2,000 Crore Annual Turnover
Expressing strong confidence in the sector’s potential, Shri Scindia said that within the next three to four years, Tripura’s agarwood industry alone could achieve an annual turnover of ₹2,000 crore.
To enable this growth, the government is actively facilitating:
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Buyer–seller meets with international purchasers
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Direct linkages between farmers and global markets
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Engagements with buyers from countries such as Qatar
These initiatives aim to transform farmers into global entrepreneurs rather than raw material suppliers.
Part of Broader Development Push for Tripura and Northeast
The Minister noted that the agarwood project is part of a larger development roadmap for Tripura. During his visit, he has:
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Laid foundation stones and inaugurated projects worth ₹220 crore
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Reviewed progress of the Agartala Government Inter College project (₹192 crore)
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Reviewed the Maternal & Child Health Hospital project (₹200 crore)
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Announced that the ₹280 crore Matabari Tourism Circuit foundation stone will be laid the following day
He stated that these initiatives reflect the Prime Minister’s vision of leveraging each state’s unique strengths for holistic regional development.
Conclusion
The ₹80 crore Agarwood Value Chain Development Scheme marks a transformative moment for Tripura’s rural economy and the broader Northeast region. By strengthening the entire value chain, boosting exports, enabling direct farmer-to-market linkages and promoting global branding, the initiative promises to turn agarwood into a flagship example of Atmanirbhar Bharat in action. With strong policy backing and sustained implementation, Tripura is poised to emerge as a global benchmark in the agarwood industry.
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Source: PIB
