Agartala, Tripura :Union Minister for Development of North Eastern Region (DoNER) and Communications 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 push to strengthen the Northeast’s agarwood economy and enhance farmers’ incomes.
Addressing a public gathering during the second day of his three-day visit to Tripura and Assam, Scindia said the agarwood sector would emerge as a strong example of “Local to Global” under the leadership of Prime Minister Narendra Modi. He added that Tripura’s agarwood farmers would receive full value for their produce under the stewardship of Chief Minister Dr. Manik Saha. The minister said the scheme aims to increase Tripura’s agarwood production capacity by up to 50%, while positioning the state as a key global hub for agarwood processing, branding and exports.
Complete Agarwood Value Chain to Be Developed
Scindia said the ₹80 crore scheme is designed to develop the entire agarwood value chain — from trees in farmers’ fields to finished perfume products in international markets. 
As part of the project, two Central Processing Centres (CPCs) will be established — one in Golaghat, Assam, and another in Tripura. These centres will facilitate processing, quality control, branding and marketing, eliminating middlemen and ensuring that farmers receive the maximum share of value addition, he said. India’s agarwood production is largely concentrated in Tripura and Assam, and the scheme will infuse new momentum into the strengths of both states, the minister added.
GI Tag, Export Expansion and Digital Integration
Highlighting steps taken to make the agarwood sector globally competitive, Scindia said the process for securing a Geographical Indication (GI) tag for agarwood is underway.
He said export quotas have been significantly enhanced, with agarwood chip exports increased six-fold from 25,000 kg to 1.5 lakh kg, and agarwood oil exports raised from 1,500 kg to 7,500 kg. In addition, sites and permissions are being integrated on a digital platform, enabling farmers to directly connect with international buyers. “The objective is clear — to remove intermediaries and ensure the full benefit reaches farmers directly,” Scindia said.
Fulkabari Emerges as ‘ODOP’ and ‘Local to Global’ Model
Calling Fulkabari’s agarwood sector a living example of ‘Vocal for Local’, ‘Local to Global’ and ‘One District One Product (ODOP)’, the minister said India has nearly 150 million agarwood trees, around 90% of which are located in the Northeastern states. With the new scheme, Tripura’s production capacity is expected to rise sharply, reinforcing its leadership in the sector.
₹2,000 Crore Turnover Potential in Next 3–4 Years
Scindia expressed confidence that Tripura’s agarwood market could achieve an annual turnover of ₹2,000 crore within the next three to four years. To enable direct global linkages, buyer-seller meets are being organized, including recent interactions with international buyers from Qatar, he said.
More Development Projects for Tripura
The minister said 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 projects including the Agartala Government Inter College (₹192 crore) and the Maternal and Child Health Hospital (₹200 crore).
On Sunday, Scindia is scheduled to lay the foundation stone for the ₹280 crore Matabari Tourism Circuit, further strengthening Tripura’s tourism and economic infrastructure.
