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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