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Agarwood Farming

Farming Process

  • Aquilaria trees are planted in tropical and subtropical climates.
  • Artificial inoculation introduces a specific fungus to stimulate agarwood resin formation.
  • Harvesting occurs after 7 to 10 years or more; wood is graded or distilled for oil.
  • Best practices: high humidity, good rainfall, well-drained soil, consistent temperatures, ~500 trees/acre.
  • Sustainability: Artificial inoculation enables a predictable, sustainable supply.

Benefits of Agarwood Farming

  • Economic: High value, high profit potential (crores per acre).
  • Environmental: Carbon sequestration, soil protection, biodiversity support.
  • Social: Employment and livelihood for farmers and communities.

Benefits of Agarwood Itself

  • Medicinal: Used in traditional medicine for asthma, diarrhea, rheumatism, digestive issues, pain.
  • Psychological: Agarwood oil reduces stress, anxiety, and depression (aromatherapy).
  • Cultural & Industrial: Used in luxury perfumes, incense, paper, and tea.

Income Potential

Potential Earnings Per Acre

An acre can hold around 500 trees. With each tree potentially yielding 2-3 kg of resin and a price of ₹5 lakh to ₹20 lakh+ per kg, a farmer could potentially earn crores from a single harvest cycle, according to a YouTube video.

Market Volatility

It is crucial to be aware that the market for agarwood can be volatile, with prices fluctuating based on supply and demand.

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