Agarwood explained: what it is and why it is so valuable
Walk into any attar shop and ask for oud, and you will be shown one of the most expensive natural fragrances in the world. That oud comes from agarwood. But agarwood is not simply a tree you plant and cut. Understanding the difference between the tree, the resin and the oil is the first step to growing it well.
The tree: Aquilaria
Agarwood comes from trees of the Aquilaria family. In India the main species grown is Aquilaria malaccensis, native to Assam and the North East and now planted in Kerala, Karnataka and Maharashtra. It is a fast-growing evergreen that likes warm, wet weather.
The resin: what you are really growing
A healthy Aquilaria tree has pale, light wood with no smell and little value. When the tree is wounded or infected by certain fungi, it fills the damaged wood with a dark, fragrant resin to protect itself. That resin-soaked wood is agarwood.
In the wild this happens rarely. Only about 7 to 10 in 100 trees form resin naturally. That is why plantations use inoculation, a controlled way of wounding the tree and introducing fungus so that resin forms.
The products: chips, oil and incense
- Wood chips: resin-rich pieces sold by grade, burned as incense.
- Oud oil: made by distilling the wood. About 70 kg of wood gives at most around 20 ml of oil.
- Powder and incense: made from lower grades and leftover wood.
Why prices vary so much
You will see very high agarwood prices online. Those are usually for rare wild wood. Plantation wood from inoculated trees is real agarwood, but it sells for much less, and the price depends on how much resin formed and its grade. Anyone quoting crores per acre without showing you how they calculated it is not being honest with you.
Is it right for you?
Agarwood can be a good long-term crop for farmers with suitable land and patience. It takes around 8 to 12 years from planting to harvest. If you are curious, book a free guidance call and we will look at your land together.