Economy

Agar-attar industry in trouble for higher cost of production

A number of labourers are diligently working on agar trees to find aromatic resins to produce oil, which is used in making fragrances and perfumes. The photo was taken recently from Barlekha upazila in Moulvibazar, which is known for its agar and attar production. Photo: Mintu Deshwara

Barlekha upazila in Moulvibazar is known for its agar and attar production, netting recognition not just in the country but also on the international stage. These two products are often referred to as the "white gold" of the upazila.

Moulvibazar's agar and attar have also received geographical indication (GI) certification, marking a significant milestone for the traditional perfume industry.

However, the industry is not without challenges.

The rising expenses stemming from a higher cost of production are piling up significant strains on those involved in production, prompting industry people to call on the government to address the issues that are holding back the growth and prosperity of the sector.

Industry people say the history of agar cultivation in the north-eastern region dates back to the 16th century and the business centred around farming began spreading in the 1940s.

After it was declared as an industry in 2015, commercial cultivation of agar has expanded. Apart from Barlekha, agar is currently being cultivated in upazilas such as Kamalganj, Kulaura and Juri.

Around 40,000-50,000 people in Moulvibazar are directly and indirectly involved with the agar-attar industry.

The method of extracting perfume from agar is quite ancient. Farmers extract oil from the aromatic resin, which the tree secretes in response to a fungal infection and which coagulates over time to create agarwood.

Agarwood oil is used in a blend of fragrances, scented water, incense and creams.

Mifta Mia, a resident of Sujanagar union of Barlekha, says the main buyers are from various countries in the world, including those in the Middle East. Traders are earning a lot of foreign currencies from the sales of the products through exports.

His factory produces 200 kilogrammes of agarwood and two and a half tolas of attar (one tola equals 11.66 mililitres) per month. Each tola of perfume is sold for Tk 8,000 to Tk 9,000 while the wood fetches Tk 50,000 to Tk 100,000 per kg.

Traders say in recent times, the wages of workers as well as the gas prices have increased abnormally, raising the cost of production and chipping away at profits.

Abdul Quddus, director of Barlekha Sujanagar Perfume Company, said several factories have already been closed down due to higher gas prices.

Sahedul Majid Niku, a senior member of the Agar Attar Manufacturers and Exporters Association, said efforts are needed to alleviate the burden on producers and ensure the continued success of the agar and attar industry.

This might involve implementing supportive policies, providing financial assistance, or facilitating access to resources and markets. Additionally, initiatives aimed at enhancing efficiency and reducing production costs could help mitigate the challenges faced by the industry, he said.

"By addressing these concerns and supporting the agar and attar producers, Moulvibazar can safeguard its reputation as a hub for high-quality perfumes."

Kabir Ahmed, general secretary of the Agar Attar Manufacturers and Exporters Association, said the demand for GI recognition has been fulfilled.

"Now other facilities should be provided to export agar and attar. Otherwise, it will be difficult to tap the actual growth potential of the industry."

Usually, consumers pay close attention to GI-certified products and are ready to pay more for them.

Urmi Binte Salam, deputy commissioner in Moulvibazar, said the whole matter would be communicated to the higher authorities.

She is hopeful that the issues facing the industry would be resolved.

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Agar-attar industry in trouble for higher cost of production

A number of labourers are diligently working on agar trees to find aromatic resins to produce oil, which is used in making fragrances and perfumes. The photo was taken recently from Barlekha upazila in Moulvibazar, which is known for its agar and attar production. Photo: Mintu Deshwara

Barlekha upazila in Moulvibazar is known for its agar and attar production, netting recognition not just in the country but also on the international stage. These two products are often referred to as the "white gold" of the upazila.

Moulvibazar's agar and attar have also received geographical indication (GI) certification, marking a significant milestone for the traditional perfume industry.

However, the industry is not without challenges.

The rising expenses stemming from a higher cost of production are piling up significant strains on those involved in production, prompting industry people to call on the government to address the issues that are holding back the growth and prosperity of the sector.

Industry people say the history of agar cultivation in the north-eastern region dates back to the 16th century and the business centred around farming began spreading in the 1940s.

After it was declared as an industry in 2015, commercial cultivation of agar has expanded. Apart from Barlekha, agar is currently being cultivated in upazilas such as Kamalganj, Kulaura and Juri.

Around 40,000-50,000 people in Moulvibazar are directly and indirectly involved with the agar-attar industry.

The method of extracting perfume from agar is quite ancient. Farmers extract oil from the aromatic resin, which the tree secretes in response to a fungal infection and which coagulates over time to create agarwood.

Agarwood oil is used in a blend of fragrances, scented water, incense and creams.

Mifta Mia, a resident of Sujanagar union of Barlekha, says the main buyers are from various countries in the world, including those in the Middle East. Traders are earning a lot of foreign currencies from the sales of the products through exports.

His factory produces 200 kilogrammes of agarwood and two and a half tolas of attar (one tola equals 11.66 mililitres) per month. Each tola of perfume is sold for Tk 8,000 to Tk 9,000 while the wood fetches Tk 50,000 to Tk 100,000 per kg.

Traders say in recent times, the wages of workers as well as the gas prices have increased abnormally, raising the cost of production and chipping away at profits.

Abdul Quddus, director of Barlekha Sujanagar Perfume Company, said several factories have already been closed down due to higher gas prices.

Sahedul Majid Niku, a senior member of the Agar Attar Manufacturers and Exporters Association, said efforts are needed to alleviate the burden on producers and ensure the continued success of the agar and attar industry.

This might involve implementing supportive policies, providing financial assistance, or facilitating access to resources and markets. Additionally, initiatives aimed at enhancing efficiency and reducing production costs could help mitigate the challenges faced by the industry, he said.

"By addressing these concerns and supporting the agar and attar producers, Moulvibazar can safeguard its reputation as a hub for high-quality perfumes."

Kabir Ahmed, general secretary of the Agar Attar Manufacturers and Exporters Association, said the demand for GI recognition has been fulfilled.

"Now other facilities should be provided to export agar and attar. Otherwise, it will be difficult to tap the actual growth potential of the industry."

Usually, consumers pay close attention to GI-certified products and are ready to pay more for them.

Urmi Binte Salam, deputy commissioner in Moulvibazar, said the whole matter would be communicated to the higher authorities.

She is hopeful that the issues facing the industry would be resolved.

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