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High Demand

“The value of Agarwood exported from Singapore alone has been estimated to exceed $ 1.2 billion per annum.” – Food and Agriculture organization of United Nations.

Agarwood has been an integral part of Hindus, Buddhists, Muslim, Christians, Taos, Sufi culture and religion for thousands of years. In the very words of Buddha, “The aromatic fragrance of agar takes one to the stage of nirvana.”

It is widely used in medicinal practices of Ayurveda, Unani, Arabic, Tibetan, Sufi and Chinese and is the main ingredient. It is widely used in the treatment of respiratory, stomach, heart related problems and aromatherapy

The strong and dense aromatic fragrance of agar oil lifts our spirit like no other. Because of this quality of agar, its popularity is unequalled. No other natural aromatic and essential oil even comes close to the reputation agar enjoys. There is a great demand for agar oil in the Gulf countries where it is also known as Agar-attar as no alternative synthetic oil equal to superior grade agar oil has been manufactured till date.

 

It remains a key ingredient in leading fragrances and cosmetics. The Agar oil is one of the perfumery’s oldest and costliest perfumery raw materials used in high class perfumery as base oil and as a fixative, imparting a lasting balsamic odor to the product. Globally, over 500 perfumes have agar as one of the ingredients.

 

Incense sticks in India are called ‘agarbathis’ and there is a lot of demand from agarbathi industries which can only be met once sufficient production is regained. The soft pulp of the tree that ultimately remains after it is processed for oil is one of the main raw materials in the paper industry.

In retail stores, agar oil and agar attar rates depend on demand. While first grade oil is sold at US $25,000-30,000, second grade oil is sold at US $5,000-10,000. In effect, they are costlier than gold.

 

Indonesia’s international market grade & rate/kg is noted below.

Grade Wood Quality ( Indonesia ) Rate/kg (in US $)
Super ‘A’ Deep black, heavy and high resin 650-850
Super ‘B’ Black, heavy and medium resin 400-550
Super ‘C’ Attractive black, heavy and medium resin 250-350

 

Though the export, import and re-export trade of agarwood products is widespread among the various countries of South East Asia, Taiwan and Singapore lead the group. While Indonesia and Malaysia are major exporters of agarwood products, other countries like Australia, Cambodia, Canada, Hong Kong, India, Indonesia, Israel, Laos, China, Malaysia, Myanmar, Pakistan, South Africa, Thailand, USA and Vietnam are also in the export trade. Taiwan has imported about 68,43,514 kg agarwood from 1994-2003. In the later years, the export and import of agarwood has considerably reduced, while the
demand has increased.

 

Agarwood produce from north-eastern states & the price fixed by the government (before 1998).

Grade Wood Name ( India ) Rate/kg (in Rs.)
‘A’ First Class Black Agar 30000 – 50000
‘B’ Second Class Buntang 20000 – 30000
‘C’ Third Class Puthas Kalaguchi 7000 – 10000