Nagaland Launches Agarwood Policy to Boost Rural Economy

Photo Courtesy: nagalandpost

Kohima: The Nagaland government has launched a new initiative to transform agarwood cultivation into a primary driver for rural economic growth and job creation. This shift follows the recent approval of the Nagaland Agarwood (Conservation and Promotion) Policy, 2026, which aims to encourage farming on private and community lands while protecting the species in its natural habitat.

During an awareness workshop in Dimapur, Minister of Environment, Forest and Climate Change C.L. John highlighted the state's significant potential, citing its fertile soil and favourable climate. He noted that Nagaland currently houses approximately 2.28 million agarwood trees, according to a 2024 report from the Botanical Survey of India. The minister expressed a need to capture global market interest, particularly in West Asia, where demand for agarwood chips and oil remains high.

Addressing the event, Minister John said, "Nagaland possesses immense untapped potential in the agarwood sector due to its favourable climate, fertile soil and naturally occurring agarwood resources." He added that the state plans to submit a cluster-based development proposal to the Ministry of Development of North Eastern Region to fast-track growth. Currently, the state is pushing for an increased export quota from the Directorate General of Foreign Trade, as it currently receives only a small fraction of the national allocation.

Principal Secretary Y. Kikheto Sema noted that economic returns from this industry could significantly outperform traditional jhum cultivation. To support growers, the state is finalizing an agreement with the Rain Forest Research Institute in Jorhat to implement artificial inoculation technology. This process is expected to improve crop value and provide farmers with the technical expertise needed to transition away from trading through neighboring states like Assam, which has historically dominated the regional market due to better institutional support.

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