Introduction
India leads the shellac market globally, as more than half the production comes from the country. The country produces vegetable saps and extracts, guar gums, plant and plant portions, fixed vegetable oil, shellac and lac-based products and other vegetable materials.
About 90% of the world’s guar gum comes from India. The major states producing guar gum are Rajasthan, Gujarat, Haryana, Punjab, Uttar Pradesh, Madhya Pradesh, Tamil Nadu, Maharashtra, Karnataka, and Andhra Pradesh.
The shellac market was valued at US$ 165.4 million in 2024 and is expected to reach US$ 168.6 million in 2025. It is projected to grow to US$ 196 million by 2033, with a compound annual growth rate (CAGR) of 1.9% during the forecast period from 2025 to 2033.
Product-wise split in exports in terms of value in FY2024-25*
Source: SHEFEXIL Note: *- Target 2024-25
India has been registering steady growth in the export of shellac and lac-based products over the last five years. It is the largest exporter of guar gum, sesame seeds, and shellac, and the second largest exporter of medicinal plants in the world. Large volumes of shellac and forest products are produced by India that are internationally acknowledged for their superior quality. Additionally, shellac and forest products contribute significantly to the lives of millions of rural and forest-dependent poor people. In India, NTFPs support the livelihoods of about 275 million people, with local communities and Indigenous People deriving up to 40% of their income from them. Vegetable saps & extracts constituted the majority of exports in value terms with a 48.81% share (Target 2024–25). This was followed by guar gum at 22.15% and plant & plant portions (herbs) at 17.95%, indicating a strong concentration in these key product categories.
Export Data
Shellac products exports (values in US$ million)
Source: SHEFEXIL
Until recently, the Council had been looking after the exports of shellac and lac-based products only but the allocation of other Non-Timber Forest Produce & their value-added products complements the existing product basket. India is the largest exporter of guar gum, sesame seeds, and shellac, and the second largest exporter of medicinal plants globally. In FY26, exports of shellac product amounted to US$ 87.72 million.
According to SHEFEXIL’s Annual Report 2023-24, total exports of major product categories including vegetable saps & extracts, guar gum, plant & plant portions (herbs), fixed vegetable oil & cake, shellac & lac-based products, and other vegetable materials increased from US$ 2,782.18 million
in FY22 to US$ 2,860.37 million in FY23 and further to US$ 3,449.69 million in FY24, reflecting a steady expansion in India’s exports of plant-based and natural products. The overall export performance indicates a strong recovery in FY24, supported by rising global demand and improved realizations across key categories.
Within this, vegetable saps & extracts remained the largest export segment, valued at US$ 1,289.99 million in FY24, followed by guar gum at US$ 585.41 million and plant & plant portions (herbs) at US$ 474.34 million. Other categories such as shellac & lac-based products (US$ 125.59 million) and fixed vegetable oil, cake & others (US$ 108.33 million) also contributed to the overall export basket. The trend highlights a strong concentration in high-value natural extracts and industrial-use products, with guar gum continuing to play a significant role despite year-on-year fluctuations.
Country-wise exports
India exports shellac and lac-based products to a diverse range of global markets, with key destinations including the USA, China PR, Germany, Mexico, Bangladesh PR, the UK, Iraq, France, Italy, and Japan. In FY26, total exports of shellac stood at US$ 87.72 million, reflecting sustained international demand for lac-based products used in industries such as food glazing, pharmaceuticals, cosmetics, and surface coatings.
Among the major destinations, the USA emerged as the leading importer, accounting for US$ 15.23 million (17.37%) of total exports, followed by China PR at US$ 13.68 million (15.60%) and Germany at US$ 13.42 million (15.31%). Other significant markets included Mexico (US$ 9.22 million; 10.52%), Bangladesh PR (US$ 6.36 million; 7.26%), and the UK (US$ 3.28 million; 3.74%). Iraq accounted for US$ 3.13 million (3.57%), followed by France (US$ 3.04 million; 3.47%), Italy (US$ 2.32 million; 2.65%), and Japan (US$ 2.05 million; 2.35%). These export destinations underscore the geographically diversified nature of India’s shellac exports, with strong demand from both developed and emerging economies.
Country-wise share of shellac exports FY26
Source: Ministry of Commerce
Government Initiatives
Strategy to maximize exports of products under the purview of SHEFEXIL
The strategic initiatives taken by the Council to promote the export of shellac and forest-based products are - Increasing the supply of focus products to propel exports from India; product and application research to go up on the value chain; Market development; and Development of Brand India.
Program for Inclusive Growth
This program is designed to tackle the lack of growth of the focus products. It is designed for the interests of tribal cultivators, who are among the most deprived rural poor and include a large percentage of women. The objective of this program is to - increase production of the products under the purview of this Council significantly in India; target benefits to beneficiaries – by augmenting their annual income significantly; establish processing units in the growing areas to create an integrated Development model.
The Non-Timber Forest Produce Information Centre (NTFPIC)
SHFEXIL formed a Non-Timber Forest Produce Information Centre (NTFPIC) which is a one-stop body for all the information related to shellac and forest products. The objective of the information centre is to build a community of stakeholders by bringing traders, producers, exporters, and co-operatives under its purview and providing them with a platform for highlighting the problems faced and providing them with support measures needed for export development.
Governing Body
Shellac and Forest Products Export Promotion Council (SHEFEXIL)
The Shellac and Forest Products Export Promotion Council (SHEFEXIL) was established in 1957 under the Ministry of Commerce & Industry to promote India’s exports of shellac and lac-based products. Over time, its role expanded to cover a wide range of non-timber forest products such as vegetable saps and extracts, guar gum, herbs, sesame seeds, and other plant-based materials. It was later renamed SHEFEXIL and now supports hundreds of products and exporters, contributing significantly to India’s export sector. The council also serves as a nodal agency for promoting exports from the North Eastern region and focuses on enhancing export potential, supporting members, and improving livelihoods of rural and tribal communities through trade.
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