New Delhi: India is witnessing a quiet but significant transformation in its agro-forestry landscape as agarwood cultivation emerges as a high-value, sustainable livelihood option for farmers. Once known primarily as a rare forest resource, agarwood—also called oudh or gaharu—is now being systematically cultivated across several Indian states, promising strong economic returns and rural employment.
Agarwood is produced by Aquilaria species when the tree forms a resin in response to infection or injury. This resin-rich wood is among the world’s most expensive natural products, widely used in perfumes, incense, traditional medicines, and luxury cosmetics, particularly in Middle Eastern and Southeast Asian markets.
Traditionally harvested from wild forests, agarwood faced overexploitation and strict international controls under CITES (Convention on International Trade in Endangered Species). However, scientific cultivation techniques, artificial inoculation methods, and improved nursery practices have enabled farmers to grow agarwood legally on private land.
States such as Assam, Tripura, West Bengal, Bihar, Sikkim, and parts of South India are seeing a steady rise in agarwood plantations. For small and marginal farmers, the crop is especially attractive as it requires limited land, can be intercropped, and offers returns far higher than conventional agriculture.
According to industry estimates, a mature agarwood tree can fetch anywhere between ₹50,000 to several lakhs, depending on resin quality and market demand. Agarwood oil, distilled from the resin, is valued at thousands of dollars per kilogram in international markets.
Experts believe agarwood cultivation could become a major contributor to India’s agro-based export economy if supported by clear policies and infrastructure. Beyond farming, the value chain includes nurseries, inoculation services, oil distillation units, handicrafts, incense production, and export logistics, generating employment across rural and semi-urban areas.
“Agarwood has the potential to replicate the success of crops like bamboo and sandalwood, provided farmers are protected from market volatility and illegal trade risks,” said an agro-forestry expert.
While the sector shows promise, challenges remain. Farmers often face confusion over legal permissions, harvesting rules, and interstate transport regulations. Industry stakeholders have called for simplified guidelines, farmer training programs, and access to certified inoculation technologies.
The government’s growing emphasis on tree-based farming, carbon sequestration, and sustainable livelihoods aligns well with agarwood cultivation. With the right policy push, India could position itself as a responsible global supplier of cultivated agarwood, reducing pressure on wild forests while boosting farmer incomes.
As global demand for natural fragrances and traditional products continues to rise, agarwood stands out as a symbol of how conservation, commerce, and community welfare can coexist. For thousands of Indian farmers, this fragrant wood may soon become a cornerstone of long-term economic security—and for the nation, a new chapter in sustainable growth.
