Why Agarwood is so expensive in India ?

Agarwood, referred to as "oudh" in India, is revered and captivating in various cultures globally, especially in the Indian subcontinent. This scented, resinous timber, coming from the Aquilaria tree kind, is valued for its pleasant smell and has been utilized for ages in perfumery, traditional healing practices, and spiritual ceremonies.

The Rarity Factor

Agarwood's high cost is mainly due to its scarcity. Agarwood is formed when Aquilaria trees' heartwood is infected by a fungus, prompting the tree to create a fragrant resin as a defense mechanism. Nevertheless, this occurrence is sporadic and happens in just a limited number of Aquilaria trees, rendering agarwood a valuable and uncommon resource.

Complex Extraction Process

Extracting agarwood is a labor-intensive and meticulous process, further adding to its cost. Traditionally, agarwood was obtained by felling trees and harvesting the infected wood. However, modern practices focus on sustainable methods that involve inoculating trees to stimulate resin production without harming them. This sustainable approach not only preserves the trees but also ensures higher quality agarwood.

Cultural and Religious Significance

 In India, agarwood is deeply embedded in both cultural and religious traditions. It is frequently employed in traditional Indian medicine due to its claimed healing benefits, which include support for digestion and reduction of stress. Additionally, agarwood is essential in various religious practices and ceremonies, where its scent is thought to cleanse the environment and enhance spiritual connections. The cultural need for agarwood drives its significant price in the Indian economy.

Global Demand and Supply Dynamics

The worldwide need for agarwood surpasses what it can naturally provide, leading to a competitive market that pushes up prices. Agarwood is extremely in demand in the scent sector due to its intricate and lasting smell, which adds richness and uniqueness to perfumes and scented mixtures. This worldwide desire, along with strict rules on the trade of agarwood to conserve threatened species, further limits its access and adds to its expensive nature.

Economic Impact

The trade in agarwood carries important economic consequences, particularly for the groups engaged in its growing and harvesting. Areas naturally dotted with Aquilaria trees, including Assam and certain areas of South India, see agarwood picking as a way of supporting numerous local societies. Nonetheless, it's crucial to adopt practices that are sustainable to secure the future of agarwood farming and avoid the depletion of this resource.