Agar wood Industry of Bangladesh

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Offline Mrittika Shil

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Agar wood Industry of Bangladesh
« on: June 05, 2017, 03:53:22 PM »
There are about 100 enterprises producing agar wood and agar- oil  in  Bangladesh. These are  mainly  based  at  Baralekhaupzila of Moulvibazar district of Bangladesh. Previously their primary source of raw materials (agar wood tree) was government and social forests. But currently they are using trees from their own cultivated gardens. An agar woodtree requires 12-15 years to be used as raw materials. About
8-10 years old tree have to be selecting for ironing (Putting iron rod inside the tree). About 100 to 150 kg iron rod is required for ironing a medium size agar wood tree. It took about 3-4 years after ironing a tree to be used for extracting agar-oil.

Local entrepreneurs are claiming that this is a 100% export oriented sector based on local raw materials and using indigenous technology. They are exporting about TK. 5.00 million [11] to TK. 100 million (the stakeholders consultation meeting) per year.

There are no official export data available for agar wood or agar-oil exporting from Bangladesh. Because most this sector is still remains as an unofficial/informal sector in Bangladesh. Entrepreneurs used to carry agar wood and agar-oil in their hand bags to Dubai or Mumbai (major regional markets) and sale in cash.

Few years back there were no HS (Harmonized System) Code in Bangladesh tariff line for agar wood or agar-oil for any international trade. Before 2-3 years the Export Promotion Bureau, Bangladesh took initiative to allocate HS Code (by the relevant government agency) for these products and facilitate formal trade of the sector.

Source: Abedin Joynal, The Agar Wood Industry: Yet to Utilize in Bangladesh, International Journal of Business and Economics