Agartala: The Centre is working to develop a structured ecosystem for Tripura’s agarwood sector with the objective of scaling up its annual turnover from about Rs 100 crore to nearly Rs 2,000 crore, Union Minister for Development of North Eastern Region Jyotiraditya Scindia said on Saturday.
Addressing a gathering at Uttar Phulbari under the Kadamtala RD block, Scindia said the growth target would be achieved through the expansion of plantations, value addition, improved processing infrastructure and the creation of direct export channels. He was speaking at the foundation stone–laying ceremony of a Rs 80-crore Common Processing Centre funded by the Ministry for Development of North Eastern Region.
The Minister said the Centre was in the process of introducing policy measures and regulatory relaxations to accord formal industry status to the agarwood sector at the national level. He added that two common processing centres would be established — one at Kadamtala in Tripura and another at Golaghat in Assam — to cover activities ranging from cultivation to processing and the manufacture of fragrance-related products.
Scindia said Tripura currently has an estimated 1.5 crore agar trees, and discussions have been held with the State government to expand plantations by an additional 50 lakh trees. He said efforts were also under way to obtain Geographical Indication certification for agarwood and its by-products manufactured in the region to ensure quality standards and traceability, particularly for products originating from the Kadamtala area.
On regulatory reforms, the Minister said approval processes for agar-related activities would be simplified through digitisation, reducing the need for multiple departmental clearances. He added that customs restrictions on carrying agar product samples on flights were proposed to be eased. Work was also in progress to develop quality benchmarks through fragrance and flavour development centres, which would be submitted to the Bureau of Indian Standards for formal recognition of the sector.
Scindia said the Rs 80-crore processing centre was being implemented as a pilot project and that its successful execution was expected to attract higher levels of private investment. The broader objective, he said, was to integrate Tripura’s agarwood producers with global markets.
Forest Minister Animesh Debbarma, Industries and Commerce Minister Santana Chakma and Youth Affairs and Sports Minister Tinku Roy were present at the event. Officials said around 40 industrialists have expressed interest in investing in the agarwood sector in the State.