About Agarbatti Sector

India is one of the largest agarbatti (incense stick) producing countries and has captured its own market and also foreign markets. Agarbatti is known for its tradition in India. Incense stick is lit up on many occasions in India for religious and social purpose. Indian Ayurvedic medical system has provided the base of modern and the most organized way of Agarbatti making mechanism and that is still in practice as of today. Nowadays agarbatti business is providing a lot of employment and also brings up the economy rate. In this process there is many such household and small scale industry which manufactures incense stick. A step is aroused towards the safety and homemade procedure and harmless smoke and also pleasant smell at the same time from incense stick. This article is to set up a eco-friendly incense stick and also step towards healthy India and Environment. This is the process to minimize the use of harmful ingredients.

                   India is the world’s main incense producing country and is a healthy exporter to other countries. Incense burning has taken place in India for thousands of years, and India exported the idea to China and Japan, and other Asian countries. Agarbatti has been used for medicinal purposes and for gracing religious rituals for thousands of years. Indian Incense has a very long history, finding a mention as early as 5,000 BCE, where the Vedic literature has brought the significance of incense to light. Indian incense is known for the rich tradition, and Indian incense has also been a frontrunner to establish the value of incense at a very early age.

                     Agarbatti is an Indian terminology which is otherwise popularly known worldwide ‘Incense Sticks” and the name itself suggests, they are thin bamboo sticks of about 8” to 12” length coated with paste of fragrance of natural ingredients extracted of scented flowers or majority forest yield. Agarbatti have huge potential as a manufacturing business because its demand is at all time high and go even higher during festivals. More than 90 countries use Agarbattis and India is the main producer of these Incense Sticks that caters to the demand of all countries worldwide.   

Cultural Beliefs :

                    The purpose of Agarbatti burning is to purify the bad air. The holy smoke prevents unwanted bad energy and bad spirit from entering home. This is use for fragrance which symbolically suggests the presence of the deity and love of deity.

                     The use of Incense Sticks is recorded in old Testament, The Vedas, and other ancient books. Agarbattis were commonly used in different places of worship like churches, monasteries, mosques and temples. Incense was widely in countries like Egypt, Greece, China, Japan and India. Peoples belonging to different religion used Agarbattis in their ritual worship. Offering to God was made by burning these Agarbattis as it purifies the atmosphere. The refreshing fragrance of the Incense Sticks spreads into air to make a serene atmosphere helping the devotees  to have calm frame of mind. The soothing and purified atmosphere helps in meditation. 

Market Potential :

  • Assuming that at least 10% of Indian among the 138 Crore  population burn a single incense stick in front of  God for daily worship in morning, we can easily guess the Indian market demand for Agarbatti and the total turnover of the business.   
  • The demand is very high and usually, the supply cannot meet the demand. Sales of Agarbattisdouble and triple during the festive season.
  •  Agarbatties are used by all communities in India, Sri Lanka, Burma and by Indians residing abroad.
  • As on today, about 90 % of word countries are using our Agarbatti.
  • Many export companies are based in Delhi, Mumbai, Kolkata, and Bangalore. Karnataka state leads in this industry, the main centers of manufacturing being Mysore and Bangalore.
  • 70% of the total sale of the product comes from South India. The raw materials are nowadays available in and around Durg, Raipur and in Nagpur also.
  • Hence to encash this opportunity ‘SHALOM BAMBOO CLUSTER ASSOCIATION’ planned to make Chandrapur as a hub of  Raw Agarbatti Manufacturing through this and upcoming projects.
  • Various research report suggests that India annually imports finished Raw agarbatti to the tune of 1.10 lakh tonnes.
  • According to KVIC, India’s agarbatti consumption is pegged at 1,490 tons per day, however, 760 tons per day is produced.
  • Data with the Ministry of Commerce show that import of Agarbatti more than doubled from 245.2 Crore in 2013-14 to 585.5 Crore in 2018-19, and that Vietnam accounts for 90% of Agarbatti imports into India.
  • We can say that imported Agarbattiswere eating the market of the domestic sector. Hence,  At the behest of the KVIC The Commerce Ministry , on August 31st  2019 passed an order restricting the import of Raw agarbatti.
  • Size of domestic Agarbatti Industry is over 6,000 Crore is expected to grow rapidly to Rs 12,000 crore in the next five years.

Export Potential of Agarbatti and related products.

  • Exports have grown manifold in the last five years.
  • Value of exports for perfumed Agarbatti and related products increased more than 100 percent in the last five years.
  • Indian agarbatti and related products exported to over 90% of countries in the world.
  • USA, Thailand, Japan are the top importer market.
  • High growth in export implies the proven capability of manufacturing the right quality of products which are accepted globally.
  • India has the potential to become leading Agarbatti and related  products producer in the world.

The export of Agarbatti and related products records an average growth rate of 25.7 %, which shows the potential and scope of this industry.

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