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The Economics of Agarwood Industry in Assam: Sustainability, Opportunities, and Challenges
American Journal of Economics and Business Management,
Vol. 4 No. 5 (2021): AJEBM
Abstract
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.
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- 1. Barden, A., Awang Anak, N., Mulliken, T., & Song, M. (2000). Heart of the Matter: Agarwood Use and Trade and CITES Implementation for Aquilaria Malaccensis. TRAFFIC International, Cambridge, UK.
- 2. CITES Secretariat (2010). Review of Significant Trade: Aquilaria species. Geneva: Convention on International Trade in Endangered Species of Wild Fauna and Flora.
- 3. Islam, M. W., Rahman, K. A., & Rahman, M. A. (2014). Agarwood Plantation and Market Potential in Bangladesh. International Journal of Business, Management and Social Research, 1(2), 54–60.
- 4. Sarma, P. K. (2012). Agarwood Plantation in Assam: Socio-Economic and Environmental Implications. Assam Forest Department Report.
- 5. Naef, R. (2011). The Volatile and Semi-volatile Constituents of Agarwood, the Fragrant Wood from Aquilaria Species. Flavour and Fragrance Journal, 26(2), 73–87.
- 6. Ahmed, S. A. (2015). Economic Feasibility of Agarwood Cultivation in North East India. Assam Economic Review, 17(1), 23–30.
- 7. Gogoi, M., & Das, A. (2018). Agarwood Cultivation and Marketing Challenges in Upper Assam. Indian Journal of Forestry, 41(3), 245–250.
- 8. Government of Assam. (2020). Assam Agarwood Promotion Policy 2020. Department of Industries and Commerce, Government of Assam.
- 9. Wong, K. M. (2001). A Revision of the Genus Aquilaria (Thymelaeaceae). Gardens’ Bulletin Singapore, 53, 199–236.
- 10. Subasinghe, S. M. C. U. P., & Hettiarachchi, D. S. (2013). Agarwood Resin Production and Artificial Induction Techniques in Aquilaria Species. Journal of Tropical Forestry and Environment, 3(1), 1–7.
- 11. UNEP-WCMC. (2019). Aquilaria malaccensis: Global Trade and Conservation Status. United Nations Environment Programme - World Conservation Monitoring Centre.
- 12. Saikia, A., & Barik, S. K. (2010). Biodiversity and Conservation Issues in Assam. North Eastern Development Review, 12(2), 40–52.
- 13. ITC (International Trade Centre). (2017). Trade Map Database – Agarwood (HS Code 121190). Geneva: ITC.
- 14. Bhattacharjee, A. (2016). Agarwood and Rural Livelihoods in Assam: A Case Study. Journal of Rural Studies, 30(2), 15–20.
- 15. Laskar, N. & Dutta, A. (2019). Illegal Agarwood Trade and Conservation Issues in Northeast India. Environmental Law & Policy Journal, 9(1), 92–100.
- 16. Ahmed, S. A. (2015). Economic Feasibility of Agarwood Cultivation in North East India. Assam Economic Review, 17(1), 23–30.
- 17. Barden, A., et al. (2000). Heart of the Matter: Agarwood Use and Trade and CITES Implementation for Aquilaria Malaccensis. TRAFFIC International.
- 18. Bhattacharjee, A. (2016). Agarwood and Rural Livelihoods in Assam: A Case Study. Journal of Rural Studies, 30(2), 15–20.
- 19. CITES Secretariat. (2010). Review of Significant Trade: Aquilaria species. Geneva.
- 20. Gogoi, M., & Das, A. (2018). Agarwood Cultivation and Marketing Challenges in Upper Assam. Indian Journal of Forestry, 41(3), 245–250.
- 21. Government of Assam. (2020). Assam Agarwood Promotion Policy 2020. Department of Industries and Commerce.
- 22. Islam, M. W., et al. (2014). Agarwood Plantation and Market Potential in Bangladesh. International Journal of Business, Management and Social Research, 1(2), 54–60.
- 23. ITC. (2017). Trade Map Database – Agarwood (HS Code 121190). Geneva.
- 24. Laskar, N., & Dutta, A. (2019). Illegal Agarwood Trade and Conservation Issues in Northeast India. Environmental Law & Policy Journal, 9(1), 92–100.
- 25. Naef, R. (2011). The Volatile and Semi-volatile Constituents of Agarwood. Flavour and Fragrance Journal, 26(2), 73–87.
- 26. Saikia, A., & Barik, S. K. (2010). Biodiversity and Conservation Issues in Assam. North Eastern Development Review, 12(2), 40–52.
- 27. Sarma, P. K. (2012). Agarwood Plantation in Assam: Socio-Economic and Environmental Implications. Assam Forest Department Report.
References
1. Barden, A., Awang Anak, N., Mulliken, T., & Song, M. (2000). Heart of the Matter: Agarwood Use and Trade and CITES Implementation for Aquilaria Malaccensis. TRAFFIC International, Cambridge, UK.
2. CITES Secretariat (2010). Review of Significant Trade: Aquilaria species. Geneva: Convention on International Trade in Endangered Species of Wild Fauna and Flora.
3. Islam, M. W., Rahman, K. A., & Rahman, M. A. (2014). Agarwood Plantation and Market Potential in Bangladesh. International Journal of Business, Management and Social Research, 1(2), 54–60.
4. Sarma, P. K. (2012). Agarwood Plantation in Assam: Socio-Economic and Environmental Implications. Assam Forest Department Report.
5. Naef, R. (2011). The Volatile and Semi-volatile Constituents of Agarwood, the Fragrant Wood from Aquilaria Species. Flavour and Fragrance Journal, 26(2), 73–87.
6. Ahmed, S. A. (2015). Economic Feasibility of Agarwood Cultivation in North East India. Assam Economic Review, 17(1), 23–30.
7. Gogoi, M., & Das, A. (2018). Agarwood Cultivation and Marketing Challenges in Upper Assam. Indian Journal of Forestry, 41(3), 245–250.
8. Government of Assam. (2020). Assam Agarwood Promotion Policy 2020. Department of Industries and Commerce, Government of Assam.
9. Wong, K. M. (2001). A Revision of the Genus Aquilaria (Thymelaeaceae). Gardens’ Bulletin Singapore, 53, 199–236.
10. Subasinghe, S. M. C. U. P., & Hettiarachchi, D. S. (2013). Agarwood Resin Production and Artificial Induction Techniques in Aquilaria Species. Journal of Tropical Forestry and Environment, 3(1), 1–7.
11. UNEP-WCMC. (2019). Aquilaria malaccensis: Global Trade and Conservation Status. United Nations Environment Programme - World Conservation Monitoring Centre.
12. Saikia, A., & Barik, S. K. (2010). Biodiversity and Conservation Issues in Assam. North Eastern Development Review, 12(2), 40–52.
13. ITC (International Trade Centre). (2017). Trade Map Database – Agarwood (HS Code 121190). Geneva: ITC.
14. Bhattacharjee, A. (2016). Agarwood and Rural Livelihoods in Assam: A Case Study. Journal of Rural Studies, 30(2), 15–20.
15. Laskar, N. & Dutta, A. (2019). Illegal Agarwood Trade and Conservation Issues in Northeast India. Environmental Law & Policy Journal, 9(1), 92–100.
16. Ahmed, S. A. (2015). Economic Feasibility of Agarwood Cultivation in North East India. Assam Economic Review, 17(1), 23–30.
17. Barden, A., et al. (2000). Heart of the Matter: Agarwood Use and Trade and CITES Implementation for Aquilaria Malaccensis. TRAFFIC International.
18. Bhattacharjee, A. (2016). Agarwood and Rural Livelihoods in Assam: A Case Study. Journal of Rural Studies, 30(2), 15–20.
19. CITES Secretariat. (2010). Review of Significant Trade: Aquilaria species. Geneva.
20. Gogoi, M., & Das, A. (2018). Agarwood Cultivation and Marketing Challenges in Upper Assam. Indian Journal of Forestry, 41(3), 245–250.
21. Government of Assam. (2020). Assam Agarwood Promotion Policy 2020. Department of Industries and Commerce.
22. Islam, M. W., et al. (2014). Agarwood Plantation and Market Potential in Bangladesh. International Journal of Business, Management and Social Research, 1(2), 54–60.
23. ITC. (2017). Trade Map Database – Agarwood (HS Code 121190). Geneva.
24. Laskar, N., & Dutta, A. (2019). Illegal Agarwood Trade and Conservation Issues in Northeast India. Environmental Law & Policy Journal, 9(1), 92–100.
25. Naef, R. (2011). The Volatile and Semi-volatile Constituents of Agarwood. Flavour and Fragrance Journal, 26(2), 73–87.
26. Saikia, A., & Barik, S. K. (2010). Biodiversity and Conservation Issues in Assam. North Eastern Development Review, 12(2), 40–52.
27. Sarma, P. K. (2012). Agarwood Plantation in Assam: Socio-Economic and Environmental Implications. Assam Forest Department Report.