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By: Admin 14-Sep-2019 FOWCham

The rise of Indian Incense stick exporters

India, being a religious country has vast incense (agarbatti) stick market since they play a major role in every pious ritual conducted by devotees. These are made from aromatic plants and essential oils extracted from plants or animal sources. They are lighted to release a fragrant smoke which finds use in religious activities, prayers, and therapeutic and aesthetic purposes. Agarbattis have been used since times immemorial as an integral part of Hindu deity worship in India. 

India exports a wide range of incense sticks that have natural, exotic fragrances extracted from jasmine, sandalwood (Chandan) and rose. These fragrances are highly in demand in the international market. The incense sticks are packaged attractively to reflect the fragrance of the sticks within. India’s exports of agarbattis in 2005-06 shot up steeply by 21.68 per cent when the same reached a level of Rs 247.42 crore over Rs 203.33 crore in the previous year. The USA continues to be the largest market of Incense sticks. There was a phenomenal growth of 39.54 percent to this market during the period—with exports having touched a figure of Rs 35.57 crore as against Rs 25.49 crore. The other major markets witnessing steep growth comprised Djibouti (92.74 per cent), Sri Lanka (57.92 per cent), Australia (53.75 per cent), Spain (46.43 per cent), Mauritius (46.04 per cent), Chile (38.99 per cent), Egypt (33.51 per cent), Malaysia (33.32 per cent), UAE (28.53 per cent), South Africa (26.78 per cent) and UK (26.58 per cent).

On the other hand, the markets showing a negative growth during the period included Italy (48.45 percent), Brazil (14.55 percent) and France (3.49 percent).

According to a recent article published in the Times of India the Ministry of Commerce and Industry has amended category for raw agarbatti from ‘free’ to ‘restricted’- a move that will result in increased import duties on it.

There was an increasing concern in the government over huge imports of raw agarbatti from China and Vietnam impacting India’s domestic agarbatti industry and pushing it into the red. Buoyed with the government decision, Khadi and Village Industries Commission which had first red-flagged the issue is preparing to set up another 50,000 agarbatti units in the world. If you wish to export your incense sticks or any other product, feel free to contact us. We have international Tie-ups with more than 30 countries of the world and can help you establish your business in the international market.

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Federation of Worldwide Chambers of Exporters and Importers