Exploring the agarwood trade in India and its promising horizon

Résumé fourni par la source

Agarwood, often referred as “liquid gold,” is a valuable aromatic resinous substance with longstanding significance in cultural and religious practices, being utilized in perfumes, incense, medicines, and funeral pyres in some communities. Agarwood is one of the major cash crops in northeastern India, and plays a vital role in the livelihood of local people. The commonest cultivated agarwood source is Aquilaria malaccensis Lam., and we found that large quantities of Aquilaria malaccensis, and small quantities of Aquilaria crasna and Aquilaria filaria were also imported and re-exported after value addition. Agarwood is listed in Appendix II of the CITES, hence its international trade is regulated by the CITES Management Authority. However, few instances of proper export with a CITES permit are observed despite there being an export quota since 2021. At the same time, the ongoing monopoly in the Agarwood industry and informal trade is adversely impacting Agarwood cultivation and trade in India. A lack of knowledge of government policies, marketing, CITES regulations, and procedures for obtaining CITES permits is contributing to market inefficiency. India has a significant gap between Agarwood production capacity and actual exports. This presents a strong opportunity to shift from a re-export hub to a primary exporter. This article aims to inform stakeholders at all levels about the production and consumption of Agarwood in India, trade factors associated with its derivatives in the global market, and trade issues arising from restrictions, government policies and regulations in India.