Assam ships first legal agarwood chips to West Asia

Assam has marked a major milestone in the agro-forestry economy by making the first legally approved export of agarwood chips to Saudi Arabia and the United Arab Emirates (UAE), opening a new chapter for an industry with large global demand and strong revenue potential.

The shipment, consisting of 100 kg of agarwood chips to Saudi Arabia and 12 kg to the UAE, was sent from the cargo terminal of Lokpriya Gopinath Bordoloi International Airport on Wednesday, May 13, 2026. The value of the shipment was ₹ 2.35 crore.

The shipment was exported after obtaining all legal permits, including CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) permit and limited export license from the General Directorate of Foreign Trade.

Jehirul Islam, president of All Assam Agarwood Growers and Traders Association and founding chairman of MJI Group, flagged off the consignment.

“This achievement is the result of years of research, policy advocacy, farmer engagement, plantation development, processing innovation and international compliance efforts,” he said.

first class product

Agarwood, also known as oud, is one of the world’s most valuable aromatic raw materials and is widely used in luxury perfumes, incense, cosmetics and traditional products in the Gulf, Europe and Southeast Asia.

Agarwood grown in Assam is highly valued for its superior quality, rich aroma and high oil content, giving the state a strong advantage in international markets.

Industry stakeholders believe that organized exports can create significant opportunities for farmers, nursery owners, distillers, traders and small businesses in Assam and the wider Northeast.

Dr. Islam thanked Assam Chief Minister Himanta Biswa Sarma for supporting the implementation of Assam Agarwood Promotion Policy 2020. The policy was introduced to legalize and regulate agarwood cultivation, processing and export while creating a transparent and farmer-friendly ecosystem.

Preventing illegal trade

Dr. According to Islam, the policy framework will help curb the illegal movement of agarwood, which has deprived local growers and entrepreneurs of fair returns for years.

He said regulated exports would allow manufacturers in Assam to directly access global buyers instead of depending on unofficial channels and middlemen.

Dr. Islam also said that the agarwood industry has the potential to generate revenue of Rs 50,000 crore for Assam if cultivation, processing and exports are increased in an organized manner.

He said the sector could emerge as one of the leading foreign exchange earners in the state, driven by increasing international demand for agarwood chips, oud oil, perfumes and other value-added aromatic products.