Nagaland’s agarwood, particularly trees with natural infection, commands premium prices and enjoys strong demand in international markets from Dubai to Southeast Asia, according to Y Kikheto Sema, IAS, Principal Secretary, Department of Environment, Forests and Climate Change (DEFCC), Government of Nagaland.
Despite this global demand, farmers in the state are often forced to sell their produce to buyers from neighbouring Assam due to the absence of a comprehensive agarwood policy, sometimes leading to distress sales.
The issue has pushed Nagaland government to push for a dedicated policy framework to regulate cultivation, processing and trade of agarwood while ensuring that local growers benefit from the lucrative global market.
During discussions with scientists of the Rain Forest Research Institute (RFRI) in Jorhat, Sema expressed surprise over the export quota allocated to Nagaland. The state’s annual export quota for agarwood chip or powder stands at 3,400 kg and 180 kg of agarwood oil constituting only about 2.25% and 2.55% of the national quota respectively.
The delegation was informed that the allocation was based on a Non-Detrimental Finding (NDF) study conducted by the Botanical Survey of India (BSI). Sema, however, said the survey should have been carried out in consultation with the state government and through extensive field visits across Nagaland rather than relying on a limited sample study.
He said the state government would take up the matter with both the BSI and the Government of India for corrective measures.
Sema observed that Nagaland could have at least 25 lakh agarwood trees, reflecting a significant expansion of cultivation in recent years. He also noted that while Assam, Tripura and Nagaland possess some of the highest agarwood plantations in the country, nearly 80% of the national export quota has been allocated to Assam.
Due to the lack of awareness and absence of a dedicated policy to support cultivation, processing and trade, many farmers in Nagaland are unable to fully benefit from the crop’s commercial potential. As a result, growers often rely on traders from Assam, who purchase the produce at lower prices.
He also pointed to the opportunity created by the Union Budget 2026 announcement in which the Government of India proposed to support the cultivation, promotion and trade of agarwood in the Northeast to diversify farm outputs, improve productivity and enhance farmers’ incomes.
Sema said this policy support provides a timely opportunity for states like Nagaland to develop a structured and scientifically guided agarwood sector. At present, he noted, limited scientific information on the agarwood species found in Nagaland and their suitability to the state’s terrain and climatic conditions remains a bottleneck.
Highlighting the importance of technical inputs such as quality planting material, appropriate spacing, inoculation techniques and value addition, Sema said agarwood from Nagaland with natural infection commands premium prices in international markets.
However, he noted that while the growth of agarwood trees across the state has been impressive, fungal infection and resin formation in some areas remain poor, creating uncertainty among farmers.
In this regard, Sema welcomed the development of an indigenous inoculum named ‘Sashi’ by RFRI, which reportedly ensures 100% infection within two years, and suggested that the institute assist farmers in Nagaland with artificial inoculation of agarwood trees using the technology.
Referring to regulations under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), Sema said agarwood sourced from Nagaland fetches premium prices in international markets, particularly in Middle Eastern countries such as Dubai.
However, due to the absence of a comprehensive policy framework, a considerable quantity of agarwood is reportedly transported outside the state through informal channels.
Sema also noted that the Ministry of Development of North Eastern Region (MDoNER), through the North Eastern Regional Agricultural Marketing Corporation (NERAMAC), is facilitating the establishment of agarwood processing and trade hubs in Kadamtala in Tripura and Golaghat in Assam.
While the proposed centre at Golaghat could benefit growers in Nagaland due to its proximity, he urged RFRI to explore the need for a similar processing and trade hub in Nagaland and submit recommendations to the Government of India.
Following the discussions, it was decided that the Rain Forest Research Institute (RFRI), Jorhat would collaborate with the Government of Nagaland in several priority areas related to agarwood development in the state.
These include resource mapping of agarwood in Nagaland, expansion of the area under cultivation, improvement of agarwood species suited to the state’s agro-climatic conditions, promotion of artificial inoculation techniques for agarwood formation, supply of quality planting material to farmers and capacity building of forest officials and growers.
It was also agreed that a Memorandum of Understanding (MoU) would be signed between the Government of Nagaland and RFRI to facilitate collaboration in these areas.
Sema further proposed that forest officials and farmers in Nagaland be trained with the assistance of RFRI to promote scientific agarwood cultivation across the state.