Status of Agarbatti Industry in India With Special Reference To Northeast
Status of Agarbatti Industry in India With Special Reference To Northeast
Status of Agarbatti Industry in India With Special Reference To Northeast
net/publication/323601703
CITATIONS READS
3 26,456
5 authors, including:
Some of the authors of this publication are also working on these related projects:
All content following this page was uploaded by Rsc Jayaraj on 07 March 2018.
DOI: http://dx.doi.org/10.22192/ijarbs.2018.05.01.024
Abstract
India is one of the largest agarbatti (incense sticks) producing country, which could capture both domestic and foreign market.
Among the agarbatti producing states Karnataka leads first place in the entire country. The percentile domestic sale of
incense/agarbatti in South-India estimated as 35 percent, West-India accounted for 30 percent, North-India for 18 percent & East-
India for 17 percent respectively. Significantly, about two-thirds of domestic consumption of agarbatti takes place in rural areas
(61.23%). The demand for agarbatti is increasing day by day for both in domestic and export markets due to the availability of
improved quality and varieties of incense sticks. As per estimation of All India Agarbathi Manufacturers Association (AIAMA),
the total exports has increased by 266 percent from Rs.1.5 billion in 1989-90 to Rs.5 billion in the domestic market and exported
agarbatti amounting Rs 2 billion in the year 2000. The market is flourishing and sale in the domestic market is also increased to
Rs 3600 crores and likewise export to other countries also attains of the worth of Rs 600 crores in the year 2013 with a
compounded annual growth rate of 15% (AIAMA). The industry is still running with the influence and monopoly of agarbatti
merchant and lack of research and developmental (R&D) works regarding improvement in quality, composition and cost-
effectiveness in packaging, storage as well as health and environmental concerns. Sustainable bio-resource utilization, value
addition, skill development, improvement and capacity building in tools, machines and techniques for preparation of quality
agarbatti, employment generations are a few thrust area of R &D works. Moreover, the Buru of Indian standard (ISI) has
provided only tentative quality control standard so far. Most of the materials used in agarbatti industry are collected from plant
resources. However, India does not have the sufficient control over them for patenting resources, composition, formulas or
process of agarbatti making for why it is delicately pruned to piracy. The agarbatti industry plays a vital role in India's economy.
It is estimated to provide income to 500,000 people, of which, about 90 percent are women. Recently the industry is growing its
popularity in northeast India, wherein the raw materials like bamboo and binder materials required for making masala of the
agarbatti industry including labor are sufficiently available in this region.
Keywords: Agarbatti, Jigat, AIAMA, Buru of Indian standard and R &D works
Introduction
Agarbatti industry is traditional in India. Agarbatti In India, a number of writings mentioned about
(Incense sticks) are being burnt in religious and social 'perfumers' and 'incense sellers' during 2000 BC in
functions since the beginning of Indian civilization as Vedic literature. According to Vedic text, incense was
early as 5,000 BCE. The Vedas, Puranas, Bhagavad used to the imitation of aroma and to create pleasant
Gita, Greek Mythology, Egyptian, Christian, Buddhist, smells. Agarbatti is burnt in the religious ceremonies,
Chinese and Islamic history and literature are spirituality, aromatherapy, meditation and simple
abounding with reference to the use of incense. pleasure; in addition to getting rid of bad smells, repel
173
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
insects (Hyams and Cushner, 2004; Lis-Balchin, 2006 wage to the rollers and lack of exposure to market etc.
& Harper, 2010). The incense-making procedure Here, the authors have made an attempt to give an
practiced by medicinal priests of the previous era in overview of Agarbatti industry in India since its
India now emerges as the modern system of incense inception to the present state of development. A
making process. Incense has played a vital role in special emphasis has been drawn to northeast India
many of the world's great religions. The Babylonians about the potential expansion of the industry as this
used incense extensively while offering prayers to part of India is the treasure house of required raw
divining oracles. The Hindu, Buddhist, Taoist, materials and workforce for agarbatti Industry.
and Shinto religions all burn incense in festivals,
processions, and many daily rituals in which it is History of Agarbatti Industry in India
thought to honor ancestors. People of several countries
like Lebanon, Arab, Jerusalem, South America, Egypt, Indian Ayurvedic medical system has provided the
Sri Lanka, and other countries of East Asia including base of modern and the most organized way of
Japan, China, Tibet, Burma, and Nepal are widely Agarbatti making mechanism and that is still in
using agarbatti. practice as of today. The Rig Veda and the Atharva-
Veda are held as special sources to glean details
Presently, the agarbatti industry plays an important regarding the old history of Agarbatti. The first phase
role in India's rural economy providing employment belonging to Ayurveda deals with the use of
opportunity to the rural poor specially woman and medicines, where incense was utilized as a medicinal
children. Agarbatti of India has got wide demand both tool for healing purposes. As the then Hinduism could
in local and international markets. Although, we do realized the significance and made full use of incense
not have précised data, the ‘All India Agarbatti and gradually become a part of Buddhism in India.
Manufacturers Association’ estimates that it has an During that time, the Indian incense reached an
annual turnover of about Rs. 2,000 crores and the rate advantageous position in the history of incense, and it
of growth is 20% on a year on year basis. Almost one- was the Agarbatti that met source to arrive at China,
fifth of the total production is exported. The whole by way of the Buddhist monks who were the first
industry occupies in tree growers, raw materials practitioners around the time of 200 CE and also
suppliers, manufacturers, local and international acquired the job of incense-making in the early stages.
traders, retailers and consumers. The modern era of agarbatti industry in India began in
the 19th Century as Tanjour of Tamilnadu emerged as
India's Agarbatti industry is mainly in the form of one center of Agarbatti making based on a need for
cottage industry and also labour intensive. The modern local temples & kings. Traditionally, Tiruchirapalli
era of Agarbatti manufacturing in India was started and areas nearby used to make aromatic and fragrance
first in Thanjavur of Tamil Nadu and from there it has products that had therapeutic and cosmetic properties.
been gradually expanded to other parts of the The technology of making Agarbatti was extended to
neighboring states. Agarbatti industry now reigns in Mysore by 1920 as forest-based raw material like
Karnataka, Andhra Pradesh, Kerala, Orissa, Tamil Sandalwood (Santalum album), Jigat (Michilus
Nadu, Gujarat, Dadra and Nagar Haveli, Bihar, macrantha), Bamboo, Charcoal, Halmandi (Ailanthus
Tripura, and Assam. Karnataka is first place among malbarica) & other Aromatic plants were available
the producer states of the country with its focal canters from the local area. The kings of Mysore patronized to
such as Mysore and Bangalore cities. Nearly 1000 bring it as semi Industrial shape by 1930. Since then
units are reported to exist in Karnataka. Agarbatti the Mysore Agarbatti achieved its magnitude
industry is increasingly expanded. According to throughout India. Karnataka forest had plenty of Jigat
Bordoloi & Sharma,( 2007) approx. Rs 7.1 billion (Michilus macrantha) also known as Maida Lakadi,
comes from the total domestic sales of which, the used for the binder. and b) Halmandi (Ailanthus
contribution of South India for 35%, West 30%, North malbarica) used for making Masala Agarbatti. These
18% and East 17%. Although, this industry has two plant species along with Sandal brought Mysore
received much attention as it contributes towards the first & late Bangalore in Map of Agarbatti Industry.
country's economy and employment, it has many This gave rise to the development of rolling skill for
constraints for the Traders/Manufacturers and also Agarbatti. Continuous development of 50 years from
limitations to Agarbatti rollers such as deficient of raw 1930 to 1980 brought Karnataka with Bangalore &
materials, technology, policy and lack of support Mysore as production base all India suppliers for
industries for perfume and packaging, labour, low quality Agarbatti & generated employment of 25
174
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
million man-days. However, constant depletion of All India Agarbathi Manufacturers Association
forest and increased in consumption of plant species (AIAMA), Bangalore; Karnataka Agarbathi
used for agarbatti making, Karnataka has to depend on Manufacturers Association (KAGMA), Mysore; City
the raw material to other states such as Northeast Agarbathi Manufacturer’s Co-operative Society Ltd,
India. This gave rise to the birth of another centre for Mysore; Karnataka State Agarbathi Manufacturers Co-
production in late 90’s. Operative Society Ltd. Bangalore; Bangalore based
Mysore Oodabathi Manufacturers Charitable Trust
Present Status of Agarbatti Industry in India (MOMCT); The Federation of Aroma/Agarbathi
Manufacturing Enterprise (FAME), Bangalore are
There is no authenticated information about the exact certain organization/ associations for promoting
number of agarbatti manufacturing industries in India. agarbatti industry specially in Karnataka State. Nearly
Moreover, no detailed survey has been conducted for 1000 units reportedly exist in the State of Karnataka
this industry so far and therefore, no credible statistics including around 67are situated in Bangalore. It is
are available. There are about 800 registered and 3000 estimated that now only 30-40% of the production in
unregistered agarbatti manufacturing units across in India is now attributed to Karnataka, but the same
India (Hanumappa, 1996, NCAER, 1990). Another against during 1960’s was 95%. The rest is shared
source projected that the country posses about 10,000 with Gujarat, Madhya Pradesh, Maharashtra, Assam
agarbatti manufacturing units in tiny, small and and Tamil Nadu. Agarbathi making is concentrated
medium forms. In 1989-90 the total quantity of mostly in Bangalore, with a sprinkling of units in
agarbatti produced was estimated at 147 billion sticks Chintamani, Kolar, Chickhallapur, Belgaum. Sudden
and total domestic sales were of the value of Indian development of IT industry in Bangalore made the
Rs. 7.1 billion (approx. US $ 198 million) while rapid rise in property price around city making
exports accounted for an additional Rs. 1.5 billion (US Agarbatti industry unviable. This gave rise to the
$ 42 million). Exports are rising sharply in recent development of raw Agarbatti in many nearby villages
years and in 1993-94 their value was recorded at Rs. 4 as well new production centers. Based on consumption
billion ( US $ 112 million) (Hanumappa, 1996, pattern, many new Agarbatti manufacturing centers
NCAER, 1990). Moreover, another 200 well- emerged in the various part of the country. They are
established ones having over 50 branded agarbattis. Nagpur, Raipur, Pune, Ahmedabad, Delhi (Islampura),
The agarbatti industry has earned Rs 2000-crore per Varanasi, Gaya, and Cuttack. Moreover, due to
annum which is predominantly coming from cottage constant shift of Fragrance for Agarbatti from Natural
level on rural India ( Balasubamanyam, 2013). to Synthetic perfume enables the entrepreneurs to start
Agarbatti Industry in any part of India. This results in
Presently, a number of small manufacturers use to the decline of Agarbatti Industry in Karnataka. It is
produce cheap and low-quality Agarbatti which, in also seen that all major successful brands in last five
turn, created marketing problems for quality years produce from other places like “Hirwa Chafa”
producers. The new policy for Import trade control from Pune, “Zed black” from Indore.It was observed
came into force in the year 1942 which helped the that more concentration towards Northeast was due to
Agarbatti industry to start importing chemicals, very economic labor, availability of all kind of raw
perfumes etc directly instead of going to the importers. materials necessary for this industry & the market,
The Karnataka Government introduced the sales tax in which was served up to this time by Karnataka.
the year 1948 at a levy of 3 pies or 1.6%. This created Presently, in addition to Karnataka other Agarbatti
a necessity of an industry association, which came into manufacturing states in India are Bihar, Dadra and
being in the year 1949 as All India Agarbatti Nagar Haveli, Gujarat, Tamil Nadu, Tripura and
Manufacturers Association (AIAMA). The association Assam.
was formed with the main aim of solving industry-
related issues at various levels. There was a significant Gujarat Agarbatti Manufacturers & Dealers
contribution to the industry by the way of perfume Association (GAMDA) is a platform for incense
blending from 1965 to 1988. Many famous brands sticks (or Agarbatti as it known in India)
entered the market that time, some of which still find manufacturers, dealers and all others who deal with
the place in the market. Agarbatti business directly or indirectly. The GAMDA
is aspiring continuously to produce quality products to
Karnataka and specially the Mysore is known as a the global market and almost 200 factories related to
pioneer in the activity of Agarbathi manufacturing. Agarbattis are being run in Ahmadabad. Interestingly,
175
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
half of these industries are directly manufacturing which would be upgraded to 100 tonnes per month by
agarbatti either manually or using machines and some mid-2006. This activity is fetching revenue of Rs
of the industries are doing value-added work such as 18,000 per tonne as against Rs 1,500 per tonne being
scenting, packaging and labeling after buying rolled realized from pulp and paper mills. According to
agarbatti from the agarbatti makers (Mahadevia et al, INBAR- CIBART (2006) in February 2006, more than
2014). Gujarat state possesses more than 560 30 tonnes of these agarbatti sticks have been supplied
registered manufacture and suppliers of Agarbatti and to ITC, Chennai and local industries. Presently, about
most of them confine in Ahmadabad. Even though 150 units exist in Andhra Pradesh.
there are a few agarbatti factories in the city, most
agarbatti rolling work is done at home on the piece- Around 49 agarbatti manufacturers in Nagpur,
rate basis in Ahmadabad. There are 31,689 women Maharashtra and also 31 registered manufacturers of
agarbatti rollers in Ahmadabad City and mainly Agarbatti in Raipur, Chhattisgarh. There are about 42
belong to Scheduled Castes or other Backwards Castes registered agarbatti manufacturers in Bihar excluding
about 74 percent (Mahadevia et al, 2014). Particularly, the unorganized and rural sector. An estimated 50,000
in the areas of Bapunagar, Odhav, Rakhiyal, women are said to be involved in Agarbatti rolling
Amraiwadi, Meghaninagar and Naroda, agarbatti activity in the Gaya district, Bihar. It may be possible
rolling has now become the main occupation of that in near future place like Gaya of Bihar & few
women in almost every house (SEWA. 2000). districts of Assam will be the future place of
production of agarbatti surpassing Karnataka.
Aurobindo Ashram and Gayatrin Ashram of Orissa are
involved in manufacturing fragrant Agarbattis such Agarbatti manufacturing industry was first started at
as Parimal Agarbatti, Berhampur, Suravi, Susree, Fultala of Baruipur dist- 24 pgs(south) ,West Bengal
Indica. The raw materials are used to bring from after the independence. Gradually a number of small
Cuttack, Bhubaneswar and Calcutta. ORMAS, a and large scale agarbatti units developed in Piyali
government of Odisha agency working for livelihood Town, Fultala, spread to Canning Block 1 & 2 and
development, has entered into a tie-up with the other parts of Baruipur , which enabled thousands of
agarbatti division of ITC Limited. people to earn their bread and butter. At present, this
industry plays a vital role in the economical
The state Maharashtra is now having the center like development of this area and has become the
Pune, wherein more than 76 agarbatti manufactures livelihood of the people of Fultala as well as a greater
continue their production. Gadchiroli Agarbatti Project part of Baruipur and Canning. In addition, it also
(GAP) of the forest divisions of Gadchiroli district, provides a great economic support to the people
Maharashtra has 21 centers (483 machines) fully involved in the distribution of these products. Baruipur
operational across the entire district. With a target of Agarbatti Manufacturers’ Welfare Association
44 centers in sight, work is in progress towards (BAMWA) West Bengal has now 112nos of
achieving it by early 2014. Currently employing manufacturing units with 56000 nos. of employees
approx 500 individuals of them near about 95 percent and annual turnover is 40 - 45 crores INR (Barua,
are women. Currently the 220 tons of raw agarbatti 2011).
produced were sold to traders and manufacturers based
out of Nagpur. The Wadsa Forest Division of the Agarbatti Production in India
Gadchiroli district with its 5 units i.e. Porla, Sonsari,
Gothangaon, Wadegaon and Kurkheda Agarbatti India has a leadership position in agarbatti production
centers (130 machines) was estimated production of and fulfils more than half of the world's incense sticks
123.5 tons in the year 2014. requirements. The Indian agarbatti sector, the world’s
largest, produces close to 208 billion sticks a year
In early February 2006, it was agreed that INBAR (Rao et al, 2009). The industry use Bamboos of
documented the bamboo-based agarbatti production 35,000 mts/annum for preparation of agarbatti sticks.
system in Mancherial, Kaghaznagar and Bellampally India produces. Approximately, Agarbathi of 60,000
Mandals in Adilabad District in Andhra Pradesh mts/annum at a growing rate of 10% annually are
(INBAR- CIBART, 2006). Marketing of these sticks is being produced in India (Doddamani, 2001).
being done locally as well as to ITC, Chennai. The Calculation shows that a total of 2 million men/women
present production capacity is 10 tonnes per month, days are required for production at this scale. Thus it
can be seen that the employment potential is huge and
176
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
more importantly growing. 80% of women workers in powder (3) production of sawdust and charcoal
the industry belong to weaker sections of the society. powder, (4) preparation of incense paste (Masala) and
Thus the Governments at national and state levels can its application onto the bamboo stick to produce the
make use of this industry to support its poverty agarbatti, (5) scenting, or application of perfume, to
Programs. The Agarbathi market is mainly consumer produce a good quality Agarbatti, and (6) packaging.
driven. India's population growth has provided an The supply of the binding material for agarbatti
estimated market size of Rs 1250-1500 crores masala has concerned agarbatti manufacturers mostly
(Doddamani, 2001). People took agarbatti burning as as the criteria for selecting this binding material
better and convenient way of offering prayers. The (Jigat), the glutinous bark of Persea macrantha are
buying capacities of people caught the attention of rarely met for any other single item (Rath, 2003). Jigat
producers and low-quality agarbatti have invaded the is a vernacular word meaning “sticky” that is used in
markets to suit the different sections of society. People the Karnataka state of India. Presently, 50 per cent of
came to know that in order to start this cottage the demand for Jigat is met through importing the
industry, there were no formalities to be observed and substance from Malyasia and Thailand. According to
the investment can range is mere Rs.1000 to 1lacs. All India Agarbathi Manufacturers Association
Besides, the absence of technology complications and (AIAMA) estimate, the current demand for Jigat is
easy availability of perfumes in the market have led to about 10000 tonnes per annum. Overexploitation of
an uncontrolled growth of industry. The art of this bark (called jigat in powder form) caused the rapid
perfuming is a trade secret for manufacturing firms depletion of this resource and thus, other alternatives
and hence it is very difficult for industry to coordinate were sought. The bark of Litsea glutinosa emerged as
as a whole in this area. Certainly big houses can be the most preferred substitutes. The bark may take 5 to
encouraged to perform by utilizing the production at 6 days for sun-drying in summer, which reduces its
the lower end of the industry. Out of the 5000 weight by 50 to 60%. The time taken for drying
estimated units across the country, a majority of them depends on the thickness of the bark, weather
are house-hold or small family businesses, which conditions, and amount of exposure to the sun.
contribute approximately 80-90% of the production. Usually, the primary collectors bring the bark to the
Agarbattis manufactured in India, especially Mysore agents of the wholesaler either without drying or in
has world-wide recognition and edge over the semi-dried condition. Probably the best drying
competing nations around the globe (Doddamani, procedure adopted by the primary collectors is in the
2001). Most popular Indian Agarbattis are Shimilipal Bio-sphere Reserve of Orissa (India) where
manufactured in Mysore, Bangluru, Tamilnadu and they reportedly spread the large strips of bark on large
Bihar. granitic outcrops and while the upper surface of the
strips is exposed to direct sunlight, the lower surface is
Raw Materials for Agarbatti dried up by the heat produced from the hot, rocky
surface. This facilitates proper drying in a shorter
period of time.
The agarbatti industry depends heavily on forest
products for raw materials. Agarbatti manufacturing In Orissa, the average production of this bark between
involves no typical or sophisticated chemicals and the 1992–93 and 1997–98 was approximately 6908
raw materials.Charcoal powder, sticky powder such as quintals (as per official reports) when the government
Jigat, Sal resin, Guggul (gum / resin of Commiphora allowed leases of the same to the private parties.
mukul), nargis powder, raw bamboo sticks, water, However, the production figures, which are primarily
various variety of oils, aromatic essence, flower furnished by the lessee, are often underreported so as
essence, sandalwood oil, rose petals, natural and to evade royalty and hence, the actual production is
chemical aromatic ingredients, saw dust, thick paper, supposed to be 30 to 50% higher. Official data further
gelatin paper, scissor, waste paper, various colour show that there was a declining trend in the output of
powder etc are components that will be needed for jigat bark in Orissa during the periods 1995-96 to
manufacturing agarbatti. Decent card board box will 1997-98 with the average production of first four years
be needed for packing. being reduced from 9337 quintals to 2050 quintals in
the next two years. However, reliable sources8
Production of agarbatti involves following steps: (1) confirm that even after the ban was imposed, the
bamboo sticks production for the central core of the annual production was still around 5000 quintals
Agarbatti, (2) production and preparation of Jigat through illegal means.
177
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
Another important raw material required for the species as well as degradation of bamboo stock in dry
industry is bamboo sticks. The core of the incense deciduous forests of central India.
stick is made of split, sliced and sized bamboo, and is
of two types - a square section and a round section, Under a CSIR-National Innovation Council (NInC)
each approximately 1.5mm-2mm and 3mm thick, and joint initiative for cluster development, CSIR-CIMAP
in lengths of either 8” (203.2mm) or 9” (228.6mm). has made an attempt to find out the alternative for
The industry uses about 208 billion bamboo sticks a Jiget (bark of Litsea glutinosa) under a project in
year (Rao et al, 2009). Rao et al., 2009 notes that the Tripura Bamboo Cluster, Agartala as dwindling supply
cost of the Bamboo stick is only about 1% of that of of this essential ingredient used as ‘binder’ or
the finished agarbatti The agarbatti stick making using ‘adhesive’ is posing a grave threat to the survival of
bamboo poles in India has been identified as one of about `3000 crores strong agarbatti (incense sticks)
the potential livelihood options available for the rural industry in India.
poor. Such sticks are mainly come from Andhra
Pradesh, Karnataka, Tripura, Assam, Orissa and The agarbatti industry has been seeking an alternative
Arunachal Pradesh. The bamboo species are mainly to Jigat powder, which is a binding agent with
used for preparation of agarbatti sticks (both squire excellent burning properties, but is in scarce supply.
and round types) such as Dendrocalamus strictus, D. Some potential combinations developed and tried by
hamiltonii, Bambusa nutans, B. tulda, B. balcooa and CSIR-CIMAP indicate the possibility of reduction of
Bambusa bambos. In Andhra Pradesh bamboo-based use of Jigat and improving the quality of Agarbattis.
agarbatti stick production is done locally by 34 VSSs Trial-cum-demonstration of one such combination of
of Adilabad and Vizianagaram districts as well as to CSIR-CIMAP was organized during the year at
ITC, Chennai. As of February 2006, more than 30 Agartala in which 25 women engaged in making of
tonnes of these bamboo based agarbatti sticks have charcoal powder based Agarbattis participated. The
been supplied to ITC, Chennai and local industries by results of the demonstration indicated that there was a
Andhra Pradesh (INBAR- CIBART, 2006). Tripura reduction of consumption of Jigat by about 9% in
used to supply about 90% of the bamboo sticks. CSIR– CIMAP combination containing flower powder
Around 3456 quintals of bamboo sticks are produced and Jigat made in the ratio of 5:1 as compared to the
Tripura Bamboo Mission in a year. traditionally used Agartala combination of charcoal
powder and Jigat made in the ratio of 3:1. Also,
About 75% of the agarbatti manufactured are of cheap number of Agarbattis made and burning time of the
quality containing only charcoal powder or low quality Agarbattis made from CSIR-CIMAP combination was
sandal wood powder with a mixture of 50% of “wood found to be about 25-30% higher as compared to
gun” powder. Cheap perfumes are used to give them a charcoal powder based Agarbattis. Being completely
top note. In superior varieties, essential oils, purified devoid of charcoal powder, the CSIR-CIMAP flower
resins, natural fixatives like amber, musk and civet are based combination was found to be ‘skin friendly’ by
used along with synthetic aromatics. Absolutes are use the women and also keeps their hands and work place
in the costlier types. clean. Institute of Wood Science & Technology
(IWST) has developed gums from 20 plants and made
Alternative Jigat to Agarbatti industry trails with different gum to get closer to the properties
of Jigat. Rain Forest Research Institute (RFRI), Jorhat
Jigat is a critical ingredient for the making of has developed 3 novel compositions of Jigat powder
Agarbatti. It is being extracted by peeling of barks of and identified 25 plants species from which materials
tree species like Litsea chinensis ( Syn. Litsea can be collected for preparation of binder materials
glutinosa), Machilus macarantha trees in tropical wet alternative to Jigat (unpublished). AJMAL'S R&D
evergreen forests of Coorg and Maland district in Center has identified Baghnala (Litsea sebifera) as a
Karnataka state was reported to have caused deat1l of viable alternative and has proved successful in tests.
a large number of trees (Prasad and Bhatnagar, 1991; The estimated use of Dammar gum extracted from
Parmeshwarappa, 1992). The two other most exploited bark of Canarium strictum by Agarbatti industry in
tree species in these forests were Boswellia serrata Kerala is about 50-60 tons per year. Thus, the
and Ailanthus malabarica. According to Prasad and domestic share of Dammar use is high (nearly 60%) in
Bhatnagar, (1991) premature harvesting for making the incense industry – including agarbatti, loban/jos
Agarbatti resulted into large scale death of these tree sticks, etc. – and is estimated to be 18,000 million tons
annually (ITC Data).
178
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
179
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
who buy 54%. However, categorizing purchases into followed by Latin America eg. Peru, Argentina & Brazil,
five income classes shows an inverse relationship also countries like Egypt, UAE, Nigeria & Srilanka
between income and the purchase of agarbatti. India’s exports of agarbattis in 2005-06 shot up
Existence of negative income and price elasticity may steeply by 21.68 per cent when the same reached a
be in play. The factors influencing purchasing level of Rs 247.42 crore over Rs 203.33 crore in the
decisions are: the quality, fragrance, brand name previous year. USA continues to be the largest market.
preference and cost. There was a phenomenal growth of 39.54 per cent to
this market during the period—with exports having
The incense stick market faces a sudden upsurge in touched a figure of Rs 35.57 crore as against Rs 25.49
demand during the festive season. Demand from both crore. The other major markets witnessing steep
domestic and international sectors peaks up during growth comprised Djibouti (92.74 per cent), Sri Lanka
festivals like Dussehra and Diwali. The market for (57.92 per cent), Australia (53.75 per cent), Spain
incense sticks is very vast and the demand for these (46.43 per cent), Mauritius (46.04 per cent), Chile
incense sticks is high even in the far-flung rural areas. (38.99 per cent), Egypt (33.51 per cent), Malaysia
The incense industry is driven by factors other than (33.32 per cent), UAE (28.53 per cent), South Africa
commerce like tradition, superstition and religion. (26.78 per cent) and UK (26.58 per cent). On the other
hand, the markets showing a negative growth during
The company marketing agarbattis under the the period included Italy (48.45 per cent), Brazil
‘Mangaldeep' brand through 5 lakh retail outlets in the (14.55 per cent) and France (3.49 per cent) Capexcil
country has doubled volumes from 50 million sticks (formerly known as Basic Chemicals, Pharmaceuticals
per month to 100 million sticks now. It continues to and Cosmetics Export Promotion Council),
upgrade the manufacture of agarbattis by villagers and functioning under the aegis of Ministry of Commerce
small scale manufacturers. The company now sources and industry, government of India, over the years has
all its requirements though tie-ups with Sankranti, been playing an important role in promoting exports of
Ananth and Jyanti Domestic Products (all from agarbattis from the country. Besides, ITC’s incense
Bangalore), Cottage industry of Aurobindu Ashram sticks business launched as part of its strategic
(Pondicherry), Prayer Dhoop Agarbatti (New Delhi), initiative to create multiple drivers of growth in fast
Swastik Industries (Chandigarh), Jayanti Products moving consumer goods sector (FMCG) leverages the
(Agartala) and Khadi and Village Indusrties core strengths of the company in marketing and
Commission (mainly Coimbatore). ITC thus helps the distribution, brand building, supply chain management
small and medium enterprises manufacturing and paperboard and packaging to offer Indian
agarbattis continuously by improving their quality and consumers high-quality agarbattis. Apart from the
productivity. It has already launched brands like local competitors, some MNCs too have entered the
‘Spriha’ and ‘Mangaldeep’ along with a wide range of market. Besides, in view of WTO's free-trade regime,
fragrances like rose, jasmine, bouquet, sandalwood, doors shall soon open for international competitors
mahur, sambrani and nagchampa. like China, Pakistan, Sri Lanka and Thailand.
India with its 400 exporters could exports Agarbatti to Although, agarbatti industry is well established but
nearly 90 countries. Export earnings have crossed Rs. needs scientific orientation. Skill and secret of
400 crore mark while the domestic market is expected performance still lies with individuals and there are
to be nearly 2000 crore. India is exporting a wide innumerable varieties of Agarbattis carrying
range of attractively packaged agarbattis with have innumerable fragrance patterns. It is hoped with the
natural, exotic fragrances extracted from jasmine, formulation of this standard quality products would be
sandalwood (chandan) and rose (Gandhi, 2012). made available to the Indian and overseas consumers.
Although it is the world’s biggest exporter of incense, Agarbattis being one of the items exported to overseas
supplying more than half of world’s total Agarbatti markets, it is hoped that this standard will ensure the
consumption, there are only a few major production export of quality goods. As the manufacture of
units in the country. Only about twenty percent of the Agarbattis is mainly done by the cottage industry and
entire market is occupied by the well established the process of manufacture is entirely manual, there
brands while the rest is governed by the small scale was a stiff resistance from Agarbattis manufacturers’
rural units. Biggest export market is US, UK, associations to the formulation of any standard for
180
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
Agarbattis. According to them it would kill the and bark of Juniperus recurva and rhizome of
industry and create unnecessary hardships. Keeping in Veleriana jatamanshi from the surrounding natural
view the significance of this product which is forest and make the Agarbatti as per their traditional
produced largely in rural sector and has a sizeable techniques. These incense sticks are very much used in
export market, the Committee formulated a standard monasteries/ Gonpa (Singh & Saha , 2013).
covering only physical characteristics like fragrance,
visual inspection, length, size, burning time, etc, The North-eastern States have pioneered in the
initially with a view to improve it substantially after production of raw bamboo sticks due to the abundance
developing performance tests in due course to of bamboos in these areas. Tripura and Assam is
distinguish an acceptable product from non-acceptable contributing 80% of total requirement of raw bamboo
one. sticks for hand rolled Agarbatti .The assorted
Agarbatti are made in rural pockets of north eastern
Some of the manufacturers have expressed their desire states as a house hold activity. Agarbatti stick making
to develop a national standard for Agarbattis and the (Roundstick & Squarestick) is an important business
Committee had agreed to print this standard as a in Tinsukia district of Assam and sell the sticks
tentative standard which would not be amenable to directly to traders in Bangalore, Delhi& Kolkata.
certification under BIS Act. The Indian standard for
incense sticks was finalized in 1984. BIS code for In Assam, the bamboo incense stick making activity
incense sticks is IS: 13582. The current growth rate of was initiated cluster by the Bahumukhi Pratibha Vikas
incense stick industry is 20% on year basis Samiti in Nalbari, They supply raw incense sticks to
(Anonymous, 1992; Bordoloi and Sarmah, 2009). buyers in Guwahati, Tejpur and Bangalore and
outsource most of their manufacturing to small home
Northeast India: potential area for Agarbatti based units in and around nearby villages. Some other
Industry agrarbatii manufacturing units are Northeast Incense
Powder factory, Sonapur, Gargi Dhupkathi Udyog,
The Northeast India can be projected as potential area Dhupkathi Making Udyog at Khudra, in Makhibaha
of Agarbathi industry due to availability of raw village, Palitana and Nathkuchi as well as to villages
materials in natural habitat. Northeast India can in Darang, Chirang and Baksa districts.
become an agarbatti production centre in India serving Deepjyoti Agarbattis Industry is a leading
not only domestic market but entire segment of manufacturer & supplier of agarbatti at
Fareast Buddhist country who are largest importer of Guwahati, Assam. With the help of technology
Agarbatti from India. The Northeastern States have guidance of the Regional Research Laboratory (RRL),
ample capacity to set-up Agarbattis enterprises at the Jorhat, M/s Gurunanak Machinery suppliers Assam
community level in rural pockets. This enterprise is (P) Ltd., Tinsukia, an Agarbatti stick making unit is
capable of creating rural employment and sustainable running at Tinsukia Assam. Some other
livelihood opportunity among the community people manufacturers of agarbatti in the state are Bandana
with the Peoples, Private and Public Partnership (P4) Agarbatti Industries Pvt. Ltd., Jorhat; Monalisha
approach (Jenner & Reza, 2008). ITC to source 100 Agarbatt, Jorhat; Greenland Private Ltd., Barpeta;
tones of raw material per month from North-East India Bharti Company, Barpeta; Sahoo Enterprises, Barama;
and around 300 milion sticks per month now as per Probir & Biman Co. - Margherita; Sri Ram Bamboo
memorandum of understanding with North-East Stick Factory - Margherita and Shree Krishna
government. Agarbatti, Dibrugarh etc.
In Arunachal Pradesh, there are only 4 Agarbathi The Tripura government informally allows collection
manufacturing units viz, Himalayan Incense Sticks, in of jigat from the forest if it is used locally for making
Borapani, Naharlagun of Papum Pare district, one unit masala and rolling batti as long as the masala is not
in Rupa of West Kameng district and two others in sold outside Tripura. TRIBAC (Tripura Bamboo and
Tawang district. All of these units fall under cottage Cane Development Centre) is attributed to its Village
industry (Singh & Saha, 2013). In Tawang district of Extension System, wherein a network of 71 young
Arunachal Pradesh, a traditional technique of men and women reached out to 4,600 households and
Agarbathi production has been developed by the 331 Self Help Groups, through projects including
people of Monpa community. They collect the plant Agarbatti rolling. While the traditional value chain
bark of Cinnamomum spp, Aquilaria malaccensis, leaf
181
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
features only the stick being manufactured in Tripura, It is estimated that there are more than 5,000 small
with the remaining 99% of the value accruing to businesses in India which carry out the final process
agencies and companies near production centres in after the non-perfumed sticks have been rolled mainly
South India (Bangalore and Mysore), TRIBAC helped by self-employed women, working at home. These
to extend the local chain to agarbatti manufacture, as a businesses put in the perfume and package the final
result of which 10% of the value would now accrue to product. 80-90% of the raw Agarbattis are made by
Tripura’s villagers. Further projects include the women at their home on a part-time basis. It is
extension of the Chain to perfuming and similar estimated that at least 1 lakh tones of Agarbattis are
processes as well, and to develop local expertise in produced in India every year. This creates about 16
marketing to ensure that communities receive the million days of work and provides supplementary
majority of the value added. This is being attempted livelihood to about 2 lakh people. Over and above that,
through the institution of 3 brands of locally an additional 10 million work days are used in making
manufactured Agarbattis (Rao et al, 2009). Over 3,000 the bamboo sticks which are in turn the basis for the
women in the region have been trained in masala raw Agarbattis.
preparation (made from tree bark and charcoal
powders) and rolling it onto bamboo sticks. Currently Although agarbatti industry falls under the Factory Act
(2007), 839 of women derive employment through in Karnataka, many of the manufacturing units are
supplying rolled batti to the Gandhigram Centre now poor households in slums which do not come under
supplies three brands of scented agarbatti to the the purview of any labor laws as many of the units are
Tripura state market As the State market for incense unregistered units. It is estimated that there are around
sticks is worth US$17.5 million per year, there is great 250,000 workers engaged in the Bangalore – Mysore
potential to up-scale incense stick rolling activities in region alone, which is the highest in the country.
Tripura.
In Ahmadabad city alone have about 20,000 agarbatti
Employment Opportunity in Agarbatti Industry rollers. About 70 % of these are home based workers.
Particularly in the areas of Bapunagar, Odhav,
No reliable official statistics exist regarding the Rakhial, Amraiwadi, Meghaninagar and Naroda,
number of agarbatti workers in the country. Near Agarbatti rolling is the main occupation of almost
about 12 lakh people are directly or indirectly every house. In the Bapunagar area of Ahmedabad,
employed by the agarbatti industry (NCAER). Out of there is hardly a single house where this work is not
which about 20% employed in organized sector the main income source.
(factory based) and 80% are recorded to get
employment in unorganized sector (home based). The ITC has proved productive as it provides a livelihood
Census of Handicrafts reported 10,934 agarbatti for 14,000 people including under-privileged women
workers across the country concentrated in Bengal, through NGOs, small entrepreneurs and self help
Delhi, U.P, Orissa and Maharashtra. Reliance has thus groups. Agarbatti industry can create sustainable
to be placed on field observations and rough estimates livelihood for rural India and keeping this into
by industry sources. As per these estimates there are consideration, Mangaldeep has signed agreements
approximately 500,000 agarbatti workers in the with various state governments of the country).
country of which 90 % are estimated to be women and
about 80% to be home based family labour. Of these Recent developments
workers half or 250,000 are based in Karnataka the
bulk of them around Bangalore and Mysore; another Agarbatti is a booming market in India and is
60,000 or so in Gujarat; 50,000 in Kerala and Tamil estimated at Rs.2000 cores in India (on the basis of
Nadu and the remainder distributed across the other conservative estimate of 20% year on year basis
states. ( Kaur, 1999). An estimated 50,000 women are growth of the industry). As per the market survey
said to be involved in Agarbatti rolling activity in the conducted by the National Council of Applied
Gaya district Bihar. Most interestingly, out of total Economic Research (1990), the total quantity of
workforce 90% are women & child labour. The agarbatti produced in the country in 1990 was, 147
industry is estimated to provide income to 0.5 million billion, valued at around Rs.7 billion. Through its
people, most of whom are contract or sub-contract participation in the business, ITC aims to enhance the
labours employed by small-scale processing competitiveness of the small- and medium-scale
enterprises in India. sectors through its complementary R&D-based
182
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
product development and distribution. In pursuance of no display area or exhibition of product and unity
its abiding social commitment, the company continues among manufacturers. Major barriers to growth of
to partner with small and medium enterprises to help Agarbatti Industry in India are Import duty taxes on
them raise their quality and process standards. Six raw materials, State-wise wages and labour laws
agarbatti manufacturing units have received ISO 9001- variation, raw material supply issues, lack of
2000 certification aided by the company’s process and marketing and advertising, entry of MNCs. Apart from
technical inputs. The business continues its these lack of Policy and Regulatory Framework,
collaboration with various NGOs in Bihar, Karnataka, shortage of labour, credit constraints as bank loans
Pondicherry and Tamil Nadu to provide vocational not readily available for small scale industry, high
opportunities to rural youth and economically priced advertising and marketing cost, weak scale of
disadvantaged women in keeping with the company’s operation, lack of Research and Development support
commitment. ITC is also supporting an ‘Agarbatti and competition in stick making from neighboring
Community Participation Programme’ run by the countries are some significant problems faced by
Vyakti Vikas Kendra, a non-profit organization funded agarbatti industry. Insecure supply of glutinous bark
by the renowned spiritual guru Sri Sri Ravishankar (producing Jigat powder, a binding agent) for agarbatti
and located near Bangalore. Over 100 village women industry has been a matter of concern since many
are gaining from the training that this organization years (Indian Export Organizations, 2000).
imparts in rolling Agarbattis. ITC is also beginning to
extend similar support to other NGOs in other states Recently the industry has to face some threats
like Bihar, Tripura and Andhra Pradesh, which are especially due to less availability of Bamboo as the
also setting up agarbatti units, imparting training to main and essential raw material used for incense stick.
village women in rolling Agarbattis. Thus, insufficient supply of raw material, Lack of
interest among new comers, seeking for different
Prospect and limitations occupation, Lack of unity among themselves, Lack of
basic hygiene and health measures, Not motivated
Indian Agarbatti has a numbers of opportunities such enough for further development and no system plan
as large export market potential, scope for innovations for future intervention are some cause of creation of
and R&D, prevailage in expanding domestic market threat to this industry.. Moreover, global competition
and free trade regime to provide better raw materials arose from China, Vietnam, Taiwan, use of unethical
for better price. practices at local level and increase in unemployment,
Mechanization, import of machinery from China are
Being a non polluting industry (‘green’ certain threats for this industry in India.
labeled industry) the hand rolled Agarbattis are having
a competitive edge over machine made Agarbatti. The agarbatti makers have to face more trouble during
Art of perfuming is well accustomed. Large labour monsoons as the agarbatti do not dry in the wet season
base, therefore, has a huge potential to and they have to stop their work completely. North
generate employment, particularly women East India has a long rainy season during which sticks
employment & hence will help for women and rolled batti need additional drying. Households
empowerment through a women employment. presently dry sticks using cooking stoves. The industry
Reputed supporting institutions present. No electric in Karnataka is now facing severe problems such as
power requirement. The industry needs minimum the supply of raw material and also losing its hold on
investment i.e. Low budget and high income if the market share.
properly managed. India has easy availability of
labour for this industry. Even any age group can work One whole at the present scenario, the cluster has no
for these units as it is generically not very harmful and design consciousness up to the mark; design
does not required any specialization. It has a high intervention is required in every sector whether it is
demand both in India and aboard market product, production process, market, health and
education or their aspirations. There is lack of
Some of the major weaknesses of agarbatti industry in awareness, education, health consciousness, and
India are insufficient raw materials, inadequate storage technology and work environment. Also over all work
system, use of manual process, no quality inspection, environment, working pattern and time management is
copying of products, lack of brand identity, lack of much unorganized. Has a high income discrepancy
awareness or conscious about new trends and market, between the worker and the unit owner. The clusters
183
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
Gandhi, G.P. 2012. Indian Agarbattis in Foreign Padmanabhan. Mohan, 2006. ITC agarbatti unit working
Lands, Market Survey Aug 31, 2012 with AP on hand-cut bamboo, Bussiness line
Hanumappa, H.G., 1996. Agarbathi: A Bamboo Based Available at:
Industry in India. INBAR, Working Paper No. 9 http://www.thehindubusinessline.com/...paper/.../itc
Hyams, G and S. Cushner 2004. Incense: Rituals, -agarbatti-unit-working-wit.
Mystery, Lore. Chronicle Books. ISBN 0-8118- Parmeshwarappa, S. 1992. Agarbatti Industry in
3993-1. Karnataka: Some Thoughts on Raw Materials, My
INBAR (International Network for Bamboo and forest, 28 (2): 143-146.
Rattan). 1994. Constraints to Production of Bamboo Parmeshwarappa, S. 1992. Agarbatti Industry in
and Rattan. Report of a Consultation held from 9 to Karnataka: Some Thoughts on Raw Materials, My
13 May 1994, Bangalore, India.INBAR Technical forest, 28 (2): 143-146.
Report No. 5. INBAR, New Delhi. 245p. Planning Commission: National Mission on Bamboo
INBAR- CIBART 2006.Agarbatti stick production Technology and Trade Development 2003.
under Andhra Pradesh Community Forest National Mission on Bamboo Applications.
Management Project Documented by INBAR- Various documents.
CIBART Documentation Centre Bangalore Andhra Prasad Ram and Bhatnagar, P. 1991. Socio-economic
Pradesh Community Forest Management Project Potential of Minor Forest Produce in Madhya
(APCFM) The World Bank Andhra Pradesh Forest Pradesh, State Forest Research Institute, Bulletin
Department Vana Samrakshana Samithis May No.26, Jabalpur.
2006 Rajendran, S; Hanumappa, H.G. 1992. NGOs in
Jenner, V. G., and M. S. Reza, 2008. Agarbattis: A Boosting Social Forestry: a Case Study of Tamil Nadu .
Sustainable Bamboo Cluster based Rural Kurukshetra, August 1992. Pp13-15. New Delhi,
Enterprise Development in Northeast Region of India.
India through P4 Approach. Available at: Ramya, H. G., V. Palanimuthu, and R.
www.tripurabamboo.com/Reports/Agarbatti_Articl Dayanandakumar. 2013. Patchouli in fragrances-
eAr.pdf. incense stick production from patchouli spent
Kaur, G., 1999. Social Security Needs of Home-based charge powder. Agric Eng Int: CIGR Journal,
Workers & Related Issues of Gender Equality. 15(1): 187-193.
Madhab J, 2003. The Green Gold: Under Exploited Rana, A.K. and Neelu Gera, 2016. Forestry for
Wealth of the North East India. Dialogue, 5(2): 45-52. poverty alleviation – role of research institutions,
Mahadevia, D., Mishra, A. and Suchita Vyas. 2014. pp 13-20 In: H.C. Sim, S. Appanah and N. Hooda
Informal Economy Monitoring Study: Home-Based (Eds) proceedings of the workshop Forests for
Workers in Ahmedabad, India Published by poverty Reduction: Changing Role for Research,
Women in Informal Employment: Globalizing and Development and Training Institutions 17–18 June
Organizing (WIEGO). A Charitable Company 2003 Dehradun, India organized by Indian Council
Limited by Guarantee – Company No. 6273538, of Forestry Research and Education (ICFRE), Asia
Registered Charity No. 1143510, ISBN number: Pacific Association of Forestry Research
978-92-95095-88-5 Institutions (APAFRI), Forestry Research Support
Malcolm Harper 2010. Inclusive Value Chains: A Programme for Asia and the Pacific
Pathway out of Poverty. World Scientific. (FORSPA),Food and Agriculture Organization of
p. 247. ISBN 9789814295000. Retrieved 4 the United Nations Regional Office for Asia and
August2013 the Pacific Bangkok, 2005
Maria Lis-Balchin 2006. Aromatherapy science: a Rao, I. V. Ramanuja, Kumar,Arun, Reza, Selim,
guide for healthcare professionals. Pharmaceutical Motukuri, Bhargavi, 2009. “A Pathway Out of
Press. ISBN 0-85369-578-4. Poverty: Bamboo Incense Stick Production as a
Nath, G.B., 2008. Globalization and growth of Livelihood Option for Rural Women in Tripura,
precarious jobs in the Indian labour market: India. ” INBAR Working Paper 55, published in
implication for economic policy. The Indian 2009 by INBAR, Beijing and CIBART, New
Journal of Labour Economics, 51(4): 533-544 Delhi.
NCAER (National Council of Applied Economic Rath B. 2003. Sustainable production of wood and
Research). 1990. Agarbattis: Market and Marketing - non-wood forest products. pp 75-81 In:
a Survey of Households . NCAER, New Delhi, proceedings of the IUFRO Division 5 Research
(mimeograph).
185
Int. J. Adv. Res. Biol. Sci. (2018). 5(1): 173-186
Subject:
Medicinal plants
Quick Response
Code
DOI:10.22192/ijarbs.2018.05.01.024
186