The agarwood sector in Tripura is receiving renewed attention after a team from the World Bank arrived to assess its potential for sustainable growth. The team visited Kadamtala in North Tripura to meet with stakeholders, examine local practices, and evaluate the future scope of the industry.
The visit comes as part of efforts to align Tripura’s economic transformation with its unique biodiversity. The review falls under the state’s 2021 Agarwood Policy. This policy aims to regulate and expand the commercial use of agarwood, a high-value non-timber forest product.
Focus on Sustainability and Local Growth
Agarwood, derived from the Aquilaria tree, is used worldwide in perfumes, incense, and traditional medicine. Tripura holds around 50% of India’s agarwood resources, making it a key player in this niche sector. However, sustainable practices and formal trade infrastructure remain critical gaps.
During their visit, the World Bank team interacted with local farmers, processors, forest officials, and community leaders. The discussions focused on eco-friendly harvesting, value chain development, and export opportunities.
“We are evaluating the scope for sustainable practices and how this sector can support rural livelihoods,” said a representative from the World Bank delegation.
Government’s Push for Economic Diversification
Tripura’s Agar Policy encourages plantation expansion, research, and the creation of farmer cooperatives. It also simplifies the licensing process for tree felling and oil extraction.
State Forest Department officials presented data on plantations, trade licenses, and export records to the World Bank team. The state is keen to partner with global institutions to bring in best practices and funding.
Chief Minister Dr. Manik Saha, in recent remarks, said Tripura’s rich natural resources must be leveraged responsibly. “Our agarwood sector has the potential to transform rural incomes. With support from partners like the World Bank, we can ensure growth that respects both nature and people,” he stated.
Need for Research and Value Addition
While the sector shows strong promise, industry experts have highlighted the lack of scientific processing, standardized grading, and research infrastructure.
The World Bank team visited local agarwood distilleries to study current practices. They noted the importance of training farmers in inoculation techniques and ensuring uniform oil quality for global markets.
A proposed Agarwood Research and Training Center in North Tripura is also under consideration. If approved, it will focus on scientific cultivation, pest control, oil analysis, and sustainable harvesting methods.
Farmers Seek Market Access and Price Support
Local farmers shared their challenges, including fluctuating market rates and middlemen-driven trade. They demanded better access to markets, crop insurance, and export channels.
“Without proper training and market linkage, many small growers struggle to earn fair prices. We want government and global agencies to help,” said Bipul Debnath, a grower from Kadamtala.
Boost to Employment and Rural Economy
Tripura’s agarwood industry is largely smallholder-based. Over 75,000 families are engaged in its cultivation, trade, and oil processing. With focused investment and research, the state estimates a potential revenue generation of over ₹2,000 crore annually from the sector.
According to the State Forest Department, strategic support could create thousands of green jobs and reduce dependency on traditional timber products.
The Way Ahead
The World Bank team is expected to submit its evaluation report to the state and central government within a few months. Based on its findings, collaborative projects may be proposed under existing schemes like the World Bank’s Forest and Livelihood Project or India’s Green Economy Initiative.
Tripura is also looking to promote agarwood through international expos, trade fairs, and online platforms.
To learn more about Tripura’s agarwood initiatives, visit the State Forest Department website. For updates on the Agarwood Policy and investment opportunities, stay tuned to Tripura Government’s official portal.
Link to the World Bank’s Forest and Livelihood Project page.
