Guwahati: Assam has achieved a landmark breakthrough in its agro-forest sector with the first legally sanctioned export of agarwood chips to Saudi Arabia and the United Arab Emirates, signalling the beginning of a major export opportunity for the state’s aromatic products industry.
The inaugural consignment, valued at approximately Rs 2.35 crore, included 100 kg of agarwood chips destined for Saudi Arabia and 12 kg for Dubai, UAE. The shipment was dispatched on Wednesday from the cargo terminal of Lokpriya Gopinath Bordoloi International Airport in Guwahati after obtaining all mandatory regulatory approvals.
The consignment was officially flagged off by Dr. Jehirul Islam, Founder Chairman of MJI Group and Chairman of the All Assam Agarwood Planters and Traders Association. The shipment marked the first official consignment of agarwood (agar) chips exported to Saudi Arabia and Dubai under the Assam Agarwood Promotion Policy, 2020.
The export received statutory clearances, including permits under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and a restricted export licence issued by the Directorate General of Foreign Trade (DGFT).
Describing the development as a historic achievement for Assam’s indigenous agarwood industry, Dr. Islam said the milestone was the result of years of research, policy advocacy, plantation expansion, farmer engagement and compliance with international trade standards.
Agarwood, popularly known as oud, is among the world’s most prized aromatic raw materials and is widely used in luxury perfumes, incense, cosmetics and traditional fragrance products across the Gulf region, Europe and Southeast Asia. Assam-grown agarwood is particularly valued in international markets for its strong aroma, superior quality and high oil content.
Industry stakeholders believe organised exports could open large-scale economic opportunities for farmers, nursery operators, traders, distillation units and small enterprises across Assam and the Northeast.
Dr. Islam credited both the Government of Assam and the Government of India for facilitating the export process and acknowledged the role of Chief Minister Himanta Biswa Sarma in supporting the implementation of the Assam Agarwood Promotion Policy, 2020.
The policy was introduced to regulate and legalise agarwood cultivation, processing and exports while creating a transparent and farmer-friendly ecosystem for the sector.
According to industry representatives, the structured policy framework is also expected to curb illegal agarwood trade, which had long deprived local cultivators and entrepreneurs of fair market access and profits. Legal exports would now allow growers to connect directly with international buyers through formal trade channels.
Dr. Islam stated that the agarwood industry has the potential to generate annual revenues of nearly Rs 50,000 crore for Assam if cultivation, processing and exports are expanded systematically. He added that rising global demand for oud oil, agarwood chips and other value-added fragrance products could position the sector as one of the state’s leading foreign exchange earners.
Experts believe the organised development of the agarwood industry could significantly strengthen Assam’s rural economy while creating employment opportunities for youth through plantation expansion and processing activities.
Beyond raw chip exports, the sector offers strong prospects for value-added manufacturing, including oud oil, perfumes, bakhoor, incense products, aromatherapy items and cosmetic ingredients.
Meanwhile, MJI Group and MJI Aromatics Pvt Ltd have announced plans to expand plantations, establish advanced processing facilities, develop a global brand for Assam oud and provide training to farmers to help them meet international production standards.
Industry leaders say the successful export marks the beginning of Assam’s emergence as a global hub for agarwood and fragrance products, transforming a traditional forest resource into a modern export-driven industry.