Assam ships first legal agarwood chips to West Asia

Assam achieved a landmark milestone in its agro-forest economy with the first legally approved export of agarwood chips to Saudi Arabia and the United Arab Emirates (UAE). The development marks a major breakthrough for India’s high-value agarwood industry, which has strong demand in global luxury and traditional markets.

The consignment was dispatched from the cargo terminal of Lokpriya Gopinath Bordoloi International Airport on 13 May 2026. The shipment included 100 kg of agarwood chips to Saudi Arabia and 12 kg to the UAE. The total value of the export consignment was estimated at ₹2.35 crore.

About Agarwood

Agarwood, popularly known as Oud, Gaharu, or Agar, is regarded as one of the world’s most valuable aromatic raw materials. It is extensively used in luxury perfumes, incense, cosmetics, and traditional cultural products, especially in the Gulf countries, Europe, and Southeast Asia.

Assam-grown agarwood is internationally valued for its superior quality, rich fragrance, and high oil content, giving the state a competitive advantage in export markets.

Historical and Cultural Importance

Agarwood has been used for thousands of years in several religious traditions, including Hinduism, Islam, Christianity, and Buddhism. It is considered one of the most prized forms of incense globally.

The therapeutic value of agarwood is mentioned in ancient Ayurvedic literature, including the Charaka Samhita. References to agarwood are also found in the works of Kalidasa dating back to the 5th century CE.

Apart from Ayurveda, agarwood is an important component of Traditional Chinese Medicine and the Unani system of medicine.

Botanical Features of Agarwood

Agarwood is obtained from resinous material produced by trees belonging to the Aquilaria and Gyrinops genera of the Thymelaeaceae family.

The resin develops as a defence response when the trees are infected by a specific mould species known as Phaeoacremonium (Phialophora parasitica). The resin may also form due to external stress factors such as injury or grazing.

Only a very small proportion of trees, estimated at around 2–7 per cent, naturally produce the resin required for high-quality perfume-grade agarwood.

Agarwood Species in India

The major agarwood species found in India are Aquilaria malaccensis and Aquilaria khasiana. These species grow naturally in the northeastern region, particularly in Assam, Tripura, Arunachal Pradesh, Nagaland, Mizoram, and Manipur.

The name of Agartala, the capital of Tripura, is believed to have originated from the abundance of agarwood trees in the region in earlier times.

Source: TH & DTE