Line from Icelanders producing fragrant trees (6)
I believe the answer is:
cedars
'fragrant trees' is the definition.
(I've seen this in another clue)
'line from icelanders producing' is the wordplay.
'from' suggests deleting specific letters.
'producing' indicates anagramming the letters.
'icelanders' with 'line' taken away is 'caders'.
'caders' with letters rearranged gives 'CEDARS'.
(Other definitions for cedars that I've seen before include "Fragrant trees of the Lebanon" , "Sacred (anag) -- trees" , "Strangely sacred trees" , "Aromatic trees" , "Tress of Lebanon" .)