Agarbatti Making Project under Gramodyog Vikas Yojana Scheme PDF

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Agarbatti Making Project under Gramodyog Vikas Yojana Scheme

Agarbatti making is a traditional industry in India with a size of around Rs. 7500 crore annual production with involvement of about 5 lakh people and export of about Rs. 750 crores. Based on the interaction with industry on 20th August 2020, it came out that, today the industry is facing problem in the area of raw materials like saw dust, charcoal powder, Joss powder etc because of increase in Agarbatti production in last one year. In addition there is also a problem with respect to bamboo sticks being used for Agarbatti making. While these raw materials may not constitute major cost towards making of Agarbatti (about 20% by these raw materials) but their indigenous production will provide good opportunity to create more jobs and also to assure regular supply of raw materials at reasonable rates. This, in the long term, will help keep the price of finished goods reasonably stable. Other important area to look into, includes inputs on „fragrance‟ and the machines manufacturing capability in the country for making Agarbatti. India is strong in the „fragrance‟ portion but needs to develop strength in machine making which is largely imported, presently. Accordingly a holistic approach is required to strengthen this traditional industry so as to sustain the present growth rate of about 10%, and to capture more and more export markets.

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