23-07-2025
It's not gold, but this tree produces something just as expensive
You won't see it shining in jewellery stores or catching the light like gold or diamonds. In fact, you might not notice it at all. But Agarwood– a dark, fragrant wood that forms deep inside certain trees– is one of the most expensive natural materials in the world.
It doesn't sparkle, but when it's burned, distilled, or worn as oil, its rich scent explains why it's so highly valued.
Where it all begins
Agarwood comes from Aquilaria trees, which grow in parts of India, Bangladesh, and Southeast Asia. These trees usually look quite ordinary. But when they're infected by a certain type of fungus, they produce a dark, fragrant resin to protect themselves. Over time, this resin spreads through the wood, turning it into what we know as Agarwood.
But this doesn't happen to every tree. Only a small number of infected trees create usable resin, which makes Agarwood naturally rare and difficult to find.
Why it's so expensive
According to a report by India(dot)com, in India, premium-grade Agarwood can sell for more than ₹1 lakh per kilogram– and that's just the raw material.
So, what makes it so valuable?
Time:
Resin formation is incredibly slow, often taking 10 to 20 years.
Uncertainty:
Not all trees develop it, and quality varies widely.
High demand:
Perfumers, incense makers, traditional medicine practitioners, and spiritual communities all compete for it.
The most valuable Agarwood comes from older trees that have gone through years of stress. Just like aged whisky or fine wine, the longer it develops, the better its quality and worth.
The scent that defines luxury
The oil taken from Agarwood is called Oud. It has a strong, musky, and slightly sweet smell that stands out from regular perfumes.
Many luxury perfume brands use Oud as a key ingredient in their most expensive collections. Even a small bottle of real Oud oil can cost tens of thousands of rupees. That's not just because of the brand– it's because just a few drops can last for hours on the skin.
More than just a fragrance
Agarwood isn't just known for its fragrance– it also has cultural and spiritual value. For centuries, people across Asia and the Middle East have used it in temples, shrines, and homes.
Its scent is believed to clean the air, relax the mind, and help with meditation or prayer.
In traditional medicine systems like Ayurveda, Chinese medicine, and Unani, small amounts of Agarwood have been used to treat problems like anxiety, trouble sleeping, and digestion issues. While it's not commonly used in modern medical treatments, its traditional use is still respected and followed in many places.
A growing crisis
With prices rising and global demand increasing, overharvesting has become a serious concern.
In many regions, trees are cut down illegally just to see if they contain resin. When they don't, the tree is lost for nothing. This has led to some species of Aquilaria being listed as endangered.
To address the problem, some growers have turned to plantation farming– intentionally infecting trees with the fungus in a controlled environment. While this helps improve supply, the quality often doesn't match that of naturally formed Agarwood.
In addition, illegal trade continues to threaten wild populations.
A global commodity with ancient roots
From handmade incense in Bhutan to high-end perfumes in Dubai and Paris, Agarwood is now used all over the world. What was once a sacred material used only in certain cultures has become part of a global luxury market worth billions.
But this growing demand has its downsides. If Agarwood isn't harvested carefully and responsibly, it could become even harder to find– or disappear completely. And since it takes years to form, it's not something that can be quickly replaced.
