Agarwood Cultivation in India: Complete Guide to Climate, Farming, Returns and Scope
When you ask farmers to name an expensive scented tree, they will definitely name sandalwood. But there is another tree that is doing the same in silence. This is Agarwood, commonly known as oud or gaharu. This is one of the world's most valuable non-timber forest products, which is used in perfumes, incense, cosmetics, and traditional medicine. The tree is native to Northeast India, and farmers are planting it in various parts of the country, including Assam and Karnataka. Let’s discuss more about it in this blog.
Table of Contents
- What is Agar Wood?
- Why Are Farmers Growing It?
- How to Cultivate Agar Wood?
- How Agar Wood Resin Forms?
- Returns and Market Value
- Challenges Growers Face
- The Grower’s Take
What is Agar Wood?
Agarwood refers to a dark, resin-filled wood found inside the Aquilaria tree, which is an evergreen native to Assam. Also, it is a precious wealth of North-East India and Aquilaria malaccensis locally known as 'Agar' Or 'Xashi'. It grows from eastern India all the way to Thailand, the Malay Peninsula, Papua New Guinea, and Borneo.
Agarwood has been in use for more than 2,000 years as a perfume base as incense and also as a medicinal herb. It is so rare in wild form today that India's environmental department classifies the tree as one of the endangered species. However, its artificial cultivation is also done in Northeastern regions.
Why Are Farmers Growing It?
Agar wood oil is blessed with many medicinal properties like anti-rheumatic, tonic, anti-stress, antimicrobial, carminative, anti-asthmatic, antioxidant, analgesic, diaphoretic, digestive, anticonvulsant, psychoactive and aphrodisiac. Check out the following reasons:
- Global Demand: It is used in perfumes, incense and medicine by Middle Eastern nations, Southeast Asian countries and western nations.
- High Profits: In certain areas, it gives better profits than sandalwood.
- Government Support: Grants, training and research have inspired farmers to cultivate it.
- Modern Technology: With artificial inoculation, it has become possible to cultivate good resin without harming natural forests.
How to Cultivate Agar Wood?
The Agarwood farming process is easy and does not require many inputs. Let’s learn more about it in detail:
Climate and Soil
Agarwood plantation can be done at approximately 10,000 per hectare. The trees take about ten years to mature. Check out the table below for more details:
|
Requirement |
Ideal Range |
|
Rainfall |
2,000-4,000 mm a year |
|
Temperature |
20-33℃ |
|
Humidity |
At least 70% |
|
Soil |
Clay-sandy, on steep slopes |
Source: Indian Institute of Management Bangalore
Crop Maturity and Harvesting of Agar Wood
The best time to harvest Agar Wood depends on the extent of disease infestation and oleoresin accumulation. The best period to harvest is from February to May to get maximum concentration of oil and less waxy substances in the wood.
Post-Harvest Process from Wood Chips to Oil
The main commercial products of this agar wood are the chips and oil. In the Gulf countries, agar wood chips are used as incense, where the oil is used as a fixative for high-quality perfumes in Europe. Check the process below to learn how it helps in the commercial farming business:
- The grown-up Agar wood tree is cut down, and the oily wood is taken out.
- Some of them are sold directly as firewood, mainly to buyers from the Middle East.
- The Agar wood chips are soaked in water for 2-3 days.
- The process involves boiling the chips so that the Agarwood oil is separated from the water. The steam distillation is done for 30 – 36 hours.
- The resulting water has a fragrance good enough for use in perfume and the wood is used for making incense sticks.
Agar Wood Yielding
Harvesting can be done after 2-3 years of artifical inoculation. A 10-year-old tree may yield 3-4 kg of chips on average. These chips can yield 10 – 15 gm of oil when distilled. About 1,700 trees are planted per hectare at 3.5 x 4.5 m spacing. Three grades oil come from agar wood, called Boya, Boha and Khara. However, the prices vary a lot, so any income figures are only indicative.
How Agar Wood Resin Forms?
Agarwood does not occur in a healthy tree. The tree produces resin as a defence mechanism in response to injury or attacks by insects and fungi. Naturally, 7-10% of trees are infected, hence the reason for the occurrence of wild Agarwood.
This is deliberately induced in growers through the insertion of iron nails into the tree's trunk. Aquilaria has been found to be resistant to hydrocarbons and metals, making it profitable to grow in such areas.
Why Artificial induction of Agar Wood is essential?
Raising an agar plantation is a long term investment. It generally starts yielding only after 20 years. Not all agar trees get infected and produce agar wood. Demand for agar wood right now is much higher than supply accross markets. So, various resarch organizations have started working to induce agar wood artificial induction. They did it quicky to meet current market demand. It can be done by physical, chemical and biological methods.
According to Indian Council of Forestry Research & Education, in North-East India, almost 20 million trees are under cultivation. In South-India there are almost 25 lakhs trees in the states of Karnataka, Tamil Nadu and Kerala and all these trees require artificial inoculation. Hence, artificial induction of agarwood is important.
Returns and Market Value
The broader implication is significant since the economic value of the tree is dependent on the amount of high-quality resin contained within it. The wider benefits are also real. The crops increase farmers' incomes, generate employment through planting and processing, relieves pressure on forests, and the export of Agarwood has been increased by India, opening new international markets for the commodity. Check out the table below for quick overview:
|
Product |
Reported Value |
|
Mature tree (about 10 years) |
₹5,000 to ₹1.5 lakh, by grade |
|
Agar oil |
₹6-8 lakh per litre, by aroma quality |
|
Trees per hectare |
About 10,000 |
Source: Indian Institute of Management Bangalore
Please note that the above numbers are estimates & are not guaranteed.
Challenges Growers Face
While growing Agarwood, farmers face many challenges. Given below are some of the challenges that usually a grower face:
- Skill Gap: Two people in Tripura take a whole day to remove one tree, whereas it takes a few hours in Assam.
- Lack of training facilities: No training center and certified trainers are available.
- Long Wait: The crop requires a long investment period, although the timing of agarwood induction and harvest depends on cultivation and inoculation practices.
- Lack of planning: Even after high prices of agar in the international market, districts such as North Tripura still lack a business plan.
The Grower’s Take
Agarwood is a high-value, long-term crop. It grows well in warm and humid climates, and growers should be prepared for a long cultivation and investment period. The demand is high and this is proven by its success in the Northeast India and parts of Karnataka. The biggest problems are skill, efficiency in processing, and management.
Frequently Asked Questions On Agarwood Cultivation in India: Complete Guide to Climate, Farming, Returns and Scope
1. What is Agarwood and why is it so expensive?
It is the resin-containing heartwood of Aquilaria trees. It is expensive, since only less than 1% of wild trees are naturally infected and there is heavy demand for it.
2. Which states in India grow Agarwood?
Assam, Tripura and Karnataka are the main regions where Agarwood cultivation is done in India.
3. How many Agarwood trees can be planted per hectare?
Approximately 10,000 Agarwood trees can be planted per hectare.
4. How long does Agarwood take to mature?
Agarwood trees take around 10 years before reaching their full height.
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