The Economics of Agarwood Industry in Assam: Sustainability, Opportunities, and Challenges

This research paper explores the intricate economics of the agarwood industry in Assam, India, a region recognized as the Agarwood Capital of India. It meticulously examines the industry’s sustainability, scope, opportunities and constraints, with a special focus on the pivotal districts, Golaghat, Sibsagar, Jorhat and Hojai. Driven by escalating global demand for its use in perfumes, medicines and religious ceremonies, Agarwood offers significant economic potential supplemented by high market value and the establishment of International Trade Centre for Agarwood in Golaghat District. The Paper highlights the supportive policy framework, including the Assam Agarwood Promotion Policy 2020, which has legalized and streamlined agar trade and commercial cultivation. Analysis of a data set of 100 samples, primarily from Golaghat, Sibsagar, Jorhat and Hojai provides valuable insights into the economic viability, profitability, and regional variations. Despite immense opportunities the industry faces challenges such as illegal harvesting, limited technical knowledge, market access issues and the long gestation period of cultivation. The paper emphasizes the critical importance of sustainable practices, balancing economic prosperity with Ecological conservation and social equity to ensure the long term viability of this valuable sector.