Transforming Tripura: Ambitious $20 Billion Annual Agar Economy Sparks Hope and Prosperity
The Tripura government has projected an annual economic gain of INR 20 billion by 2025 from the cultivation of Agarwood (Aquilaria malaccensis), an evergreen tree native to the northeastern hills of South Asia. Under the newly implemented Tripura Agarwood Policy 2021, the state aims to cultivate Agarwood across 2,000 hectares over the next five years, modeled after the successful cultivation patterns of rubber, bamboo, and pineapple.
Agarwood, native to Tripura and historically significant—Agartala, the state capital, derives its name from the tree—has been highly valued for over 2,000 years for its medicinal, aromatic, and religious applications. Despite its long-standing significance, Agarwood cultivation had been neglected for two centuries. Presently, Tripura hosts 5.4 million Agarwood trees over 2,000 hectares, with plans to expand to 10.4 million trees across 4,000 hectares by 2025. The state has allocated a budget of INR 100 crore to promote this initiative.
The government’s strategy includes supporting private landholders with 0.4 acres of land to cultivate Agarwood and encouraging the use of Agarwood trees as fencing and shade plants. Agarwood plantations can double as fencing material once the trees are three years old, facilitating the artificial infection process essential for Agarwood production.
The forest department has outlined a comprehensive business model comprising contract farming, an Agar inoculation production unit, private and leased Agar plantations, and the establishment of processing units for Agar oil and chips. Additionally, they have plans for nurseries and tissue culture-based planting, banking solutions for growers, and utilizing byproducts for various business opportunities.
The state also seeks marketing support and trade facilitation from the central government, including international exhibitions in major Indian, Gulf, and European cities. Furthermore, Tripura plans to forge agreements with pharmaceutical, cosmetic, refreshment, and neurotherapy companies for business-to-business promotion. Highlighting the high value of Agarwood oil, often called the “king of incense,” Tripura aims to elevate its presence in the global perfumery market and medical treatments. The establishment of an Agarwood Trade and Research Centre is also on the agenda to serve as a marketing platform for local growers.
Original Story https://tripurachronicle.in/articles/tripura-targets-a-20-billion-annual-economy-from-agar/
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