Guwahati, Feb. 16: The Krishak Sramik Unnayan Parishad, Assam, has urged the state government to frame a law to regulate agar trade so that the government doesn't lose revenue and farmers get proper price for their produce.

Agar oil, a fragrant extract of agarwood, is the base for manufacturing perfumes which are in high demand in the West Asian countries. Agar trees in Assam, locally known as sasi, are famous for producing the best quality agar oil and are grown in Nagaon, Jorhat, Golaghat and Sonari districts.

Pradip Kalita, chairman of the Parishad, alleged that agar trade in Assam has been monopolised by the perfume companies run by Badruddin Ajmal, who has been depriving the government of revenue and the farmers of their due price for the last three decades.

"The price of agar in the international market is Rs 1 crore per kg, while farmers are paid only Rs 1 lakh per kg. The BJP government had promised to institute a committee and frame the necessary laws based on its recommendations to regulate the trade but nothing has been done so far. Forest department officials are facilitating illegal trade of agar. Our members are trying to stop such trade by apprehending the trucks that carry the wood chopped into small pieces and packed in cartons to avoid detection," Kalita said.

The Parishad has threatened to launch an agitation in Dispur from February 21 if the government did not take immediate steps to stop the "looting of valuable forest resources".