Agarwood is the resinous wood that is formed in the inner part of the Aquilaria (malacensis, crassna, subintegra) trees when they become infected. The resin imparts a unique fragrance to the wood and it is used as incense for religious ceremonies, aromatherapy, cosmetics, perfume, sculptures and meditation. The trees are mainly found in the tropical regions in the world, stretching from Assam in India, through South East Asia to Papua New Guinea. In the wild, they can grow from 15-30 meters tall and 60 cm in diameter.
           
Agarwood is identified in different countries with different names such as Agar, Agaru, Gaharu, Sasi, Agor, Akyaw, Adlerholz, Calambac, Alim, Eaglewood, Aloeswood, Oud, Oudh, Ude, Ud, Ood, Tram huong, Kanankoh, Tengkaras, Karas, Chen-xiang, Ch’En Hsiang, Ch’Ing Kuei Hsiang, Huang Shu Hsiang, Agila wood, Jinko, Jin-koh.

Known as “the tree of the Gods” among ancient civilizations, Agarwood has been used by mankind in cultures from the Middle East to East Asia for various religious and ornamental purposes for millennia. References to this tree can be found in the classical literature and religious scriptures of Hinduism and Christianity (and it was believed this was tree that the body of Christ was embalmed in). The bodies of pharaohs in ancient Egypt were also embalmed in this tree in preservation for the afterlife. In Buddhism, strings of prayer beads consisting of 108 beads carved from Agarwood is considered the most precious and highly sought-after. Wherever it was used, it was often reserved for the rich and privileged class of society due to its scarcity and value.

In modern time, the demand and popularity of this tree has only grown as new applications of Agarwood-derived oil and resin products have been found in the perfumery and cosmetics industries, usually as a ‘primer’ substance in their products. This high demand, coupled with the scarcity of these trees in the wild, has led to a  wild ‘gold rush’ frenzy in ill-conceived plans to harvest the trees, often leading to widespread deforestations with disastrous results. This is primarily due to the fact that most Aquilaria trees that grow in the wild do not contain resinous wood unless they become infected. As a result, hundreds of trees may be felled without yielding any significant amount of agarwood.  Now, it is believed that the trees can no longer be found in the wild in many of its natural habitats, save for a few isolated pockets in South East Asia and the Papua New Guinea regions. However, in recent years, modern techniques and research have been able to induce the production of resinous wood by inoculating the trees with proprietary innoculants. This method of innoculation has turned the farming of agarwood into a very lucrative industry. In addition, efforts has been organized  for the replanting of Agarwood trees in the wild with the dual purpose of replenishing its dwindling numbers as well as providing an alternative cash crop for the local farmer population.

Some Examples Of Agarwood Products In The Market

1. The highest quality wood is used for making sculptures and prayer beads. These are considered collectible items of immense value among connoisseurs.
2. About 10-20% of large Agarwood pieces are turned into chips and shavings. These are the most commonly traded items in the industry. Their value vary greatly, depending on the resin content, with price ranging from USD 50-10,000/Kg.
3. The remainder of the wood after the premium grade chips and pieces have been carved out is used for oil distillation. These have significantly lower price, usually selling for less than USD 30/Kg.
4. The oil that is extracted from the distillation process typically commands a high value, due in part to the fact that its complex chemical structures makes it very difficult to synthesize and also a large amount of wood chip is required to distill any appreciable quantity of oil. Depending on the concentration, the oil usually sells for between USD 2,000-20,000/Kg.
5. The leftover Agarwood pulp after the distillation process is usually used to make prayer incense sticks and has a price of less than USD 5/Kg.