Agartala: Union Minister for Development of North Eastern Region (DoNER) and Communications, Shri Jyotiraditya Scindia, on Saturday laid the foundation stone of the ₹80 crore Agarwood Value Chain Development Scheme at North Fulkabari in Tripura, marking a major step towards transforming the Northeast’s agarwood economy into a global success story.
Addressing the gathering, Shri Scindia said the agarwood project reflects Prime Minister Narendra Modi’s vision of leveraging the unique strengths of each state to drive inclusive growth. He noted that several development initiatives have been undertaken during his visit, with the agarwood scheme being a major milestone.
He informed that projects were dedicated to the public on the first day of his visit, the agarwood value chain foundation stone was laid on Saturday, and the Matabari Tourism Circuit would be inaugurated on Sunday as another key initiative for Tripura.
Strengthening the Entire Agarwood Value Chain
The Union Minister explained that the ₹80 crore scheme has been designed to develop the entire agarwood value chain, from cultivation in farmers’ fields to processing, branding, and marketing of finished products in international markets.
Under the scheme, two Central Processing Centres (CPCs) will be established one in Golaghat district of Assam and another in Tripura. These centres will facilitate scientific processing, quality control, branding, and export-oriented marketing, ensuring higher returns for farmers.
Eliminating Middlemen, Empowering Farmers
Shri Scindia emphasised that a core objective of the scheme is to remove intermediaries from the supply chain. By enabling direct market access, the initiative seeks to ensure that agarwood farmers receive the full value of their produce.
He added that the leadership of Tripura Chief Minister Dr Manik Saha has played a crucial role in supporting farmers and strengthening the state’s agarwood ecosystem.
GI Tag, Export Boost and Digital Integration
The minister highlighted several structural reforms undertaken to make India’s agarwood sector globally competitive. The process for obtaining a Geographical Indication (GI) tag for agarwood is currently underway.
Export quotas have been increased six-fold, with agarwood chip exports raised from 25,000 kg to 1.5 lakh kg, and agarwood oil exports enhanced from 1,500 kg to 7,500 kg. Permissions and regulatory processes are also being integrated into a digital platform to enable seamless global trade.
Fulkabari as a ‘Local to Global’ Model
Describing Fulkabari as a model cluster, Shri Scindia said the region exemplifies Prime Minister Modi’s vision of ‘Local to Global’, ‘Vocal for Local’, and ‘One District One Product’ (ODOP).
India currently has an estimated 150 million agarwood trees, nearly 90 percent of which are located in the Northeastern states. With the new scheme, Tripura’s agarwood production capacity is expected to increase by up to 50 percent.
₹2,000 Crore Market Potential for Tripura
The Union Minister expressed confidence that Tripura’s agarwood sector alone has the potential to generate an annual turnover of ₹2,000 crore within the next three to four years.
To facilitate direct global linkages, buyer-seller meets are being organised. He cited a recent interaction with buyers from Qatar, where Tripura’s farmers were directly connected with international purchasers.
Series of Development Initiatives Continue
Shri Scindia noted that the agarwood project is part of a broader development push in Tripura. On Friday, he laid foundation stones and inaugurated projects worth ₹220 crore, and reviewed major infrastructure initiatives including the Agartala Government Inter College and the Maternal and Child Health Hospital.
He reaffirmed the Centre’s commitment to working closely with the Tripura Government to elevate the state’s economic and cultural profile.
Towards Atmanirbhar Bharat
Concluding his address, the Union Minister said the agarwood scheme reflects the Prime Minister’s focus on Atmanirbhar Bharat by empowering farmers, strengthening local industries, and expanding India’s footprint in global value chains.
With sustained policy support and global outreach, Tripura’s agarwood sector is poised to emerge as a national benchmark for sustainable and inclusive growth.