This isn’t about tea gardens or oil fields—it’s about agarwood, famously called ‘liquid gold’ in international markets. Assam sits on a goldmine that most of its people don’t even know exists. Assam’s ‘liquid gold,’ agarwood, offers immense potential. Discover how this state is strategically poised to lead the global agarwood market, unlocking economic growth. The state produces some of the world’s finest agarwood, yet ironically, Assam remains largely unaware of its treasure trove. In contrast, local communities and farmers in Assam have no real use for agarwood, as the perfume manufacturers in Arabia construct massive factories to produce billions of dollars worth of perfumes.
The reality is staggering—the global agarwood market is worth over ₹40,000 crores annually, with Assam being the primary source. Districts like Golaghat, Jorhat, and Sivasagar already had the best agarwood trees, but the state has been losing one of its biggest economic setups. The irony deepens when you realize that every premium perfume shop in Dubai and Saudi Arabia stocks products made from Assamese agarwood, while locals back home remain oblivious to their state’s contribution to the global fragrance industry.
This disconnect between production and recognition represents India’s biggest missed opportunity in the luxury goods sector. The time has come for Assam to claim its rightful place as the world’s agarwood capital, transforming this natural advantage into sustainable economic growth that benefits everyone from farmers to traders to the state treasury.
Agarwood Market: The Economic Goldmine that is Untapped
The figures paint an impressive picture of an opportunity that needs to be tapped. Now, illegal but unofficial and mostly unofficial trade of 40,000 crores is going on behind the scenes; not even a single rupee enters the government kitty in the official books. Assamese agarwood Market is re-exported via countries such as Malaysia, Indonesia, and Thailand in dubious import-export trade and hawala, a type of underground economy, depriving these states of the economic rewards they deserve.
The most frustrating thing about this scenario is the high value of real Assamese agarwood. International markets inflate the price of a kilogram of high-quality agarwood oil to between 6 lakhs and 75 lakhs rupees. Even agarwood chips sell at 15,000 to 10 lakhs per kilogram, depending upon the quality and grade. Such astronomical prices represent the world demand for genuine Assamese agarwood, which is the best in the world.
The inauguration of the International Agarwood Trade Centre in Golaghat is a turning point in this story. Assam: With the central government giving an export license for 1,400 kg of agarwood and 5,640 kg of oil per annum, Assam is now ready to get its due share in this profitable market. The state government’s target of ₹500 crores in official trade represents the beginning of what could become a ₹10,000 crore industry within the next five years.
Agarwood Market- From Awareness to Action: Building the Agarwood Economy
The transformation of Assam’s agarwood sector requires more than just policy changes – it demands a complete shift in mindset and approach. This is because of the lack of awareness, which has been the greatest hindrance to development over the decades. Many Assamese, such as farmers with agarwood trees, were unaware that there existed a global demand for their product. This ignorance provided an ideal setting for the middleman and rogue traders to take advantage of the situation.
The breakthrough came when dedicated individuals like Jehirul Islam, Chairman of the All Assam Agarwood Planters and Traders’ Association, brought international market knowledge back to Assam. Shocked by his findings in Saudi Arabia, where the dominant Gulf markets were full of Assamese agarwood, his experience made it surprising that the state was unaware that it was supplying its own to the world’s perfumes. This revelation sparked a movement that eventually led to the Assam Agarwood Promotion Policy 2019, the first of its kind in the state’s history.
Nowadays, it is not a matter of being aware but of coming into active development. Under visionary leadership, the state government has declared the Golaghat district a One District, One Product (ODOP) zone specifically for agarwood. This designation brings focused attention, resources, and infrastructure development to maximize the sector’s potential. The partnership among government, farmers, traders, and researchers secures benefits for all value chain stakeholders.
Agarwood Market: The Global Market Opportunity and Assam’s Competitive Edge
Assam’s agarwood possesses unique characteristics that make it superior to competitors worldwide. Recent studies found 48 compounds in Assamese agarwood, of which more than 90 percent have great health benefits. The compounds contain natural anti-cancerous elements, the ability to manage diabetes, and strong pain-killing agents. The scientific verification brings agarwood to the number of possible pharmaceutical gold mines. It was previously a luxury ingredient in perfumes.
The global market dynamics strongly favor Assam’s position. There’s a 60% deficit in worldwide agarwood supply, creating unprecedented opportunities for authentic producers. Although agarwood grows in other places, no other region is as high in quality and aromatic intricacies as the Assamese region. Such a quality premium is directly converted into high prices and increased market demand, providing Assam with a sustainable competitive advantage.
Its strategic vision does not focus solely on the export of raw materials. Assam has already begun producing Indigenous agarwood-based perfumes, marking the first “Made in Assam” fragrance products in the state’s history. This value-added approach, along with the near-future emergence of the International Agarwood Trade Center, makes Assam an ideal place to tap into the high-value chunks of the market and construct a full-fledged ecosystem out of the agarwood trade.
The potential for medical research partnerships with institutions like IIT Guwahati and NIPER further strengthens Assam’s position as a comprehensive agarwood hub, not just a supplier.
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