CITES Eases Export Of Agarwood From India

India has successfully prevented the inclusion of Aquilaria malaccensis (agarwood) in the Review of Significant Trade (RST) of Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

Agarwood (Aquilaria malaccensis)

  • About: Agarwood is a fragrant, dark, and resinous wood derived from the heartwood of Aquilaria trees. 
    • It is one of the most cultivated species in Northeast India and is also grown in other parts of the country. A recent study estimates that there are not less than 139.89 million (13.989 crores) plants in India.
  • Formation of Agarwood:
    • Infection Process: Under natural conditions, the agarwood is formed due to fungus-host interaction.
      • Agarwood forms in the heartwood of Aquilaria trees after infection with Phaeoacremonium mold.
    • Defense Mechanism: The tree secretes resin in response to the fungal infestation.
    • Changes in Heartwood: Initially light-coloured and scentless, the heartwood becomes dense, dark, and resin-saturated as the infection progresses.
  • Vulnerability to Fungal Infection: 
    • Typical Vulnerability: Usually, plants above the age of seven years are vulnerable to infection by the fungus. 
    • Early Infection Cases: However, the initiation of natural infection is observed in several plants with an age of less than two years in certain parts of Assam, Manipur, and Tripura.
  • Artificial Induction of Agar Production
    • Methods: Agar production can be induced artificially using physical, chemical, and biological methods or combinations.
    • Ideal Age for Inoculation: The ideal age for artificial inoculation is six to eight years.
    • Practice: This practice is common in all agarwood-cultivation states where the natural infection rate is low or absent.
  • Uses: Agarwood is highly valued and is used in:
    • Incense: Numerous applications such as in the aroma industry and burned for its aromatic fragrance;  preparations of air fresheners and purifiers.
    • Perfumes: Adds a distinctive note to perfumes and colognes. The extracts (agarwood oil) of plants are also used in water-based perfumes. 
    • Medicine: The essential oil extracted from agarwood has anti-inflammatory, anti-rheumatic, analgesic, and antioxidant properties. 
      • It is also used in traditional medicine for its potential health benefits.
  • Cost: Agarwood is one of the most expensive woods globally.
  • Historical Context of Agarwood Listing: The wild resource of agarwood has become relatively rare due to overharvesting. 
    • Since 1995, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) has listed Aquilaria malaccensis (the primary source) as a potentially threatened species in Appendix II of CITES based on India’s proposal at CoP9 in 1994.

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Recent Developments

  • Successful Prevention of Agarwood Inclusion in RST of CITES: India has successfully prevented the inclusion of Aquilaria malaccensis (agarwood) in the Review of Significant Trade (RST) of CITES.
    • The removal of India from the RST for Aquilaria malaccensis was achieved based on a non-detriment findings (NDFs) study of the plant species by the Botanical Survey of India (BSI), Ministry of Environment Forest and Climate Change (MoEFCC).
  • New Export Quota Announced: The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) has announced a new export quota for the highly valuable and aromatic resinous wood and oil of Aquilaria malaccensis (agarwood) from India, effective April 2024.
    • The export quota recommended by the Non-Detriment Findings (NDF) for 2024–2027 
      • Agarwood Chips and Powder/Sawdust: 1,51,080 kg/year
      • Agarwood Oil: 7,050 kg/year

Key points of the Non-Detriment Findings (NDF) report of Ministry of Environment Forest and Climate Change (MoEFCC)

  • Prohibited Harvesting: Harvesting of plants or collection of seeds/seedlings/saplings and other propagules should not be allowed from existing wild populations, protected areas, and reserve forests.
  • Permitted Harvesting: Harvesting should be allowed from home/community gardens, plantations on leased/patta lands, private or community plantations, or any other types of small-scale/large-scale plantations.
  • Absence of Export Quota for a long time: The absence of an export quota for a long period and other trade-related restrictions in India caused an increase in informal trade/export of agar chips, oil, powder etc. to the Middle East and other foreign countries. 
    • It also caused an increase in costs of agarwood chips and oil in the global market as India is a major agarwood trading nation with which most importing countries have long trade records.
    • Over 1.25 tonnes of chips and 6 litres of oil/derivatives were seized in six states of India between 2017 and 2021, according to a TRAFFIC report.
      • The TRAFFIC, the Wildlife Trade Monitoring Network, is a leading non-governmental organisation working on wildlife trade. It is a joint program of the World Wildlife Fund (WWF) and the International Union for Conservation of Nature (IUCN).
  • Challenges for Legal Trade Post Export Quota Establishment
    • Legal Trade Difficulties: Although an export quota was established in November 2021, legal restrictions prevented growers and farmers from trading agarwood legally.
    • Shift to Informal Trade: These legal restrictions led growers and farmers towards informal trading channels.

Economic Benefits for Farmers due to removal of Agarwood from the CITES

  • Cultivation and Impact: Agarwood is cultivated in various parts of India, particularly in the northeastern states. The development will benefit lakhs of farmers in specific districts of Assam, Manipur, Nagaland, and Tripura.
  • Sustainable Trade: With Agarwood no longer in the RST, there’s more flexibility in trade regulations. This could allow for sustainable trade practices that benefit local communities while ensuring conservation.

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CITES (Convention on International Trade in Endangered Species) of Wild Fauna and Flora

  • CITES is also known as the Washington Convention.
  • It is a multilateral treaty to protect endangered plants and animals.
  • It was drafted as a result of a resolution adopted in 1963 at a meeting of members of the International Union for Conservation of Nature (IUCN).
  • The convention was opened for signature in 1973 and CITES entered into force on 1 July 1975.
  • CITES is legally binding on state parties to the convention, which are obliged to adopt their own domestic legislation to implement its goals.
  • The CITES Secretariat is administered by UNEP (The United Nations Environment Programme) and is located at Geneva, Switzerland.
  • The Conference of the Parties to CITES, is the supreme decision-making body of the Convention and comprises all its Parties.
  • Although CITES is legally binding on the Parties, it does not take the place of national laws.
    • Rather, it provides a framework to be respected by each Party, which has to adopt its own domestic legislation to ensure that CITES is implemented at the national level.

Objective of CITES: 

  • Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten their survival.
  • It accords varying degrees of protection to more than 35,000 species of animals and plants.

Classifications of CITES Appendix: 

  • Appendix I: It lists species that are in danger of extinction. It prohibits commercial trade of these plants and animals except in extraordinary situations for scientific or educational reasons.
  • Appendix II species: They are those that are not threatened with extinction but that might suffer a serious decline in number if trade is not restricted. Their trade is regulated by permit.
  • Appendix III species: They are protected in at least one country that is a CITES member state and that has petitioned others for help in controlling international trade in that species.
  • Species may be added to or removed from Appendix I and II, or moved between them, only by the Conference of the Parties.
    • However, species may be added to or removed from Appendix III at any time and by any Party unilaterally.

Review of Significant Trade (RST)

  • The CITES Review of Significant Trade (RST) process is a CITES compliance process that ensures sustainable trade in Appendix-II species. 
  • It involves close examination of a country’s species exports to ensure compliance with CITES regulations.
  • The Review of Significant Trade Management System tracks the progress of country/species combinations selected for review, through the four stages of the Significant Trade Review.
  • Species/country combinations currently subject to review are included, as well as those that have been eliminated from review, following satisfactory reports from the range State.
  • The process places increased scrutiny on species exports from a country to determine if the Convention is being properly implemented.
  • Noncompliance may result in disciplinary actions, including trade suspensions. 

 

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