On January 20, 2025, the Ministry of Commerce and Industry (Department of Commerce) issued a notification amending the export policy for Agarwood (Aquilaria Malaccensis) Chips and Powder and Agar Oil obtained from artificially propagated sources.
This amendment seeks to increase the export quotas and modify the conditions for exporting these valuable products.
Below are the key highlights of the updated export policy:
Export Limits for Agarwood Chips and Powder:
- The export of Agarwood (Aquilaria Malaccensis) Chips and Powder obtained from artificially propagated sources (cultivated outside forest areas) has been significantly increased.
- Annual Export Quota:
- The annual export quota for Agarwood chips and powder is now 1,51,080 kg for the period April 2024 – March 2027 (three financial years).
- Previously, the quota was 25,000 kg annually.
- Export Policy Conditions:
- Export licenses will be granted subject to various conditions, including submitting a Certificate of Origin from the relevant State Government’s Forest Department, verifying the legality and origin of the products.
- Firms must also provide a coloured photograph of the products, a current stock certificate, and ensure that the products have been harvested in accordance with CITES (Convention on International Trade in Endangered Species).
Export Limits for Agar Oil:
- The export of Agar Oil extracted from Agarwood (Aquilaria Malaccensis) sourced from artificially propagated plantations is also subject to revised annual quotas.
- Annual Export Quota:
- The annual export limit for Agar Oil has been increased to 7,050 kg for the period April 2024 – March 2027.
- Previously, the limit was 1,500 kg annually.
- Export Policy Conditions:
- Similar to Agarwood chips and powder, exporters of Agar Oil must provide a Certificate of Origin, photographs, and an undertaking confirming the products comply with CITES guidelines for sustainable harvesting.
Geographical Scope for Export:
- The export of Agarwood and Agar Oil will be permitted from the following states, subject to the revised state-wise annual limits:
- Assam, Tripura, Manipur, Nagaland, Karnataka, Meghalaya, Kerala, and others, as outlined in the revised limits (Annexure).
Effect of the Notification:
- The notification immediately increases the export quotas for both Agarwood Chips and Powder and Agar Oil.
- This is a significant move to promote sustainable trade in these products, while ensuring the protection of Agarwood resources through strict adherence to export conditions.
Compliance with CITES:
- Both Agarwood chips and Agar Oil will only be allowed for export upon submission of a valid CITES permit at the time of actual export. This is to ensure that the export of these products does not threaten the sustainability of Agarwood resources globally.
The Notification also issues State-wise Annual Export Limits for Agarwood (Aquilaria Malaccensis) obtained from artificially propagated sources:
