The Assam Agarwood Promotion Policy 2020
50% / ₹50 Lakh
Capital Subsidy for Oil Distillation Units
₹1.00 Lakh/ha
Commercial Cultivation Subsidy (3 Yrs)
2.5 Crore
Targeted Saplings Within 5 Years
5% Interest
Working Capital Subvention (5 Yrs)
Positioning Assam as the Agarwood Capital of India
Aquilaria malaccensis, locally known as 'Agar' or 'Xashi', has been used for over 2,000 years for medicinal, aromatic, and perfumery applications. Assam is reputed to be India's 'Agarwood Capital', where this tree species thrives naturally. The policy aims to create another 'Green Revolution' in Assam after tea.
| Key Parameter | Provision / Detail |
|---|---|
| Issuing Authority | Industries and Commerce Department, Government of Assam |
| Notification Details | Notification No. Cl.127/2020/70 dated 18.12.2020 (Gazette published 11.01.2021) |
| Effective / Validity | Effective 01.01.2021 for a period of 5 years |
| Target Coverage | 2.5 Crore saplings planted in 5 years; 1,000 Ha/year block plantation; 20 Lakh free saplings/year |
| Core Districts | 91% of wild/cultivated stock is concentrated in Jorhat, Golaghat, Sivasagar, and Hojai |
Free saplings, commercial block plantation, and boundary planting
| Category / Scale | Incentive Quantum & Disbursement Schedule |
|---|---|
| Free Sapling Distribution | Up to 10 free saplings per family for small homestead growers and small tea garden owners. |
| 1 Ha Nursery | ₹16 Lakh (100% funded for Govt; 50% back-ended subsidy for private). |
| 0.5 Ha Nursery | ₹10 Lakh (100% funded for Govt; 50% back-ended subsidy for private). |
| Commercial Cultivation (≥1 Bigha / 0.13 Ha) | ₹1.00 Lakh per hectare, released 50:30:20 across Year 1/2/3 based on sapling survival. |
| Boundary Plantation | ₹1.00 Lakh per 3,000 saplings (min 100 to max 10,000 saplings), released 50:30:20 over 3 years. |
Inoculation subventions and harvesting tool distribution
- •Artificial Inoculation Subsidy: ₹500 per plant subsidy for inoculation of Agar trees aged 8–10 years, paid after third-party verification.
- •Inoculum Production Units: 100% funding for Govt institutes (RFRI Jorhat); 50% financial assistance for private labs (max ₹10 Lakh).
- •Harvesting Toolkits: 100% grant distribution of tools and implements for Agarwood chips extraction.
Capital subsidy, small distillation units, and working capital interest
| Processing Head | Quantum & Ceiling |
|---|---|
| Capital Investment Incentive (New Units) | 50% of investment on Plant & Machinery, upper limit ₹50 Lakh. |
| Working Capital Interest Subvention | 5% interest subsidy for 5 years on bank credit. |
| Small Distillation Units (60 Kg SS Dag) | 50% subsidy on cost of SS vessels (Dag) and steam boilers, ceiling ₹5 Lakh. |
| Patent Sponsorship | 100% sponsorship for patenting Agarwood-based products and processes. |
International Agarwood Trade Centre and CITES export rules
- •International Agarwood Trade Centre (IATC): Established at Golaghat for international buyer/seller meets, auctions, and trade exhibits.
- •Trade Fair Subsidy: Up to ₹5 Lakh per unit for participating in national and international trade exhibitions.
- •Online Marketing Portal: 50% subsidy for developing an Agarwood marketing portal (ceiling ₹5 Lakh).
- •Research Funding: Up to ₹10 Lakh for R&D in fast-growing genotypes, artificial induction, and yield improvement.
- •CITES & EXIM Gating: Export of cultivated/processed Agarwood is subject to CITES Appendix II regulations and DFO Certificate of Legal Possession.
Single-Source Stacking Rule: Financial incentives in any particular category will be given from ONLY ONE source among the Industrial & Investment Policy of Assam 2019, NEIDS 2017, and this policy.
Source: The Assam Agarwood Promotion Policy 2020, Notification No. Cl.127/2020/70 dated 18.12.2020, Industries and Commerce Department, Government of Assam. Published in Assam Gazette 11.01.2021. Effective 01.01.2021 for 5 years. This page is an informational summary and not a substitute for professional advice.