The burners seen at a factory in Moulvibazar, where Agar trees are being processed to extract and filter Agar oil.
The centuries-old Agarwood industry is facing hurdles to harness its potential in the absence of proper policy and technological support from the government, entrepreneurs said.
Agarwood, one of the most expensive non-timber wood items, is a unique industry that fetches around Tk 100 million in annual export income, according to sector insiders.
Agarwood has multidimensional uses in perfume, cosmetics and medicine. It is also widely used in religious and cultural functions in different parts of the world, especially in the Gulf region.
Narrating the challenges and opportunities of the sector to a group of journalists last week, the Agarwood entrepreneurs in Moulvibazar said they need support from the government, which can prop up the Agar-Aator cluster in small and medium enterprise (SME) sector.
The Dhaka-based journalists visited the SME cluster at Sujanagar of Barolekha upazila in Moulvibazar under a press tour, organised by the SME Foundation (SMEF), which is promoting the industry.
If necessary support is extended, they said, the 100 per cent export-oriented Agar-Ator item could be the country's premium product, now produced from local raw materials.
They noted that export earning of the product and employment would be increased, if the Sujanagar Agar-Ator cluster model is replicated in other parts of the country.
Md. Ansarul Haque, president of Bangladesh Agar and Ator Manufacturers and Exporters Association (BAAMEA), said, "We (the industry) urgently need a testing laboratory to assess quality of our products as it will enhance our bargaining capacity and help us get higher price of our products."
Mr Haque also requested the government to take effective measures to give them CITES certificate, required to deliver each of the orders, from Moulvibazar instead of Dhaka office to enable them to deliver products within the buyers' timeframe.
The existing system of having certificate from Dhaka is time-consuming, which forces foreign buyers to cancel their orders, he said.
The association chief said the authority stopped issuing the CITES certificates on May 25 without prior notice, an unwelcome decision he said is hampering their business.
He urged the government to take immediate steps to resume issuing the certificate for the greater interest of the industry that employs 30,000-35,000 people.
There are about 250-300 enterprises producing Agarwood and Agaroil in Moulvibazar, but the entrepreneurs are yet to adopt any modern technology that can expedite and increase their production.
'Agar' is a tree that the entrepreneurs cultivate. Trees of 8-10 years old are first selected for ironing (putting iron rod inside the tree). Around 100 to 150 kg iron rod is required for ironing a medium-size Agarwood tree.
About 3-4 years after the ironing, Agar oil is extracted from a tree using the indigenous technology at factories, Kabir Ahmed Chowdhury, general secretary of BAAMEA, said.
Entrepreneurs used to hand-carry Agarwood and Agar-oil to Dubai, Mumbai, Singapore and other major regional markets and sell in cash. As such, there are no official export data.
Though competing countries like Malaysia, India and Indonesia produce more than eight items, Bangladeshi entrepreneurs are stuck in the production of only three products-Agarwood chips, Agar oil and Agar dust or powder. This is because of the lack of training and knowledge about diversification.
However, there is a silver lining. The authorities gave HS code for the Agar products to facilitate its formal trade.
Current market price of distilled Agar oil is up to US$ 30, 000 per kg and Agarwood up to US$ 10,000 per kg, officials said.
Some other hurdles in the industry include a lack of government initiative to help exporters export through formal and structured channel and to train up Agarwood and increase access to the government forest for plantation.
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