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Agarwood Oil (Oud) Distillation Products

Agarwood Oil (Oud) Distillation Products

Assam is known for its agarwood resources, and oud oil extraction supports high-value perfumery and export-oriented fragrance industries.

Agarwood (oud) oil extraction is a high-value industry in Assam, where agarwood trees are cultivated and processed through distillation. The oil is widely used in luxury perfumes, incense, and traditional fragrance products. Assam’s agarwood has strong demand in Middle Eastern and international markets. From a fiscal perspective, agarwood oil attracts applicable GST rates, while exports are zero-rated and may be eligible for RoDTEP benefits. Imports of distillation equipment may involve customs duties, with possible support under available incentive schemes. From a non-fiscal perspective, compliance with forest regulations, quality certification, and traceability requirements is essential. Export markets require adherence to CITES norms, IFRA guidelines, and international quality standards.

Government Schemes for the Industry

Sr no. Scheme Name Scheme Type Action
1 Deendayal Antyodaya Yojana National Rural Livelihoods Mission (DAY-NRLM) Central View more
2 MSE Green Investment and Financing for Transformation Scheme (MSE-GIFT) Central View more
3 MSE Scheme for Promotion and Investment in Circular Economy (MSE-SPICE) Central View more
4 MSME Trade Enablement and Marketing Initiative (MSME TEAM Initiative) Central View more
5 Pradhan Mantri MUDRA Yojana (PMMY) Central View more
6 Prime Minister's Employment Generation Programme (PMEGP) Central View more
7 Uttar Poorva Transformative Industrialization Scheme (UNNATI) 2024 Central View more