Agarwood trees are mostly found in the north-eastern states.
Budget 2026 Announcement: In Budget 2026-27, the government has adopted a new strategy to make farming a profitable deal. This time farming, related businesses and modern technology have been kept at the centre. Finance Minister Nirmala Sitharaman has announced several important steps to increase the income of farmers, create new jobs in villages and modernize farming. Under this, a provision of Rs 1,62,671 crore has been made for the agriculture sector.
The special thing is that agarwood will be promoted in the north-eastern states. This is the same tree whose wood is more expensive than gold. Let us know what is Agarwood and why is it so expensive?
How much does it cost?
‘Agarwood’ is also known as ‘Ood’. It is a dark-coloured, heavy and fragrant wood, filled with resin (oil-like gum). It is formed when a healthy tree of Aquilaria species is affected by some fungal infection or some kind of injury. The tree reacts to protect itself and during this time it produces fragrant resin. Oud oil is extracted from oud wood through hydro-distillation process. According to media reports, the price of one kg of good quality otter is said to be more than Rs 70 lakh. At the same time, the price of one gram of its oil is said to be around ₹ 9000 thousand.
agarwood in india
In India, the agarwood tree is found naturally in Assam, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura and Meghalaya. In Assam, Agar tree is also called Jasi and Sanchi. Now organic farming of agar tree is also being done in the western coastal areas of India like Kerala, Maharashtra and Gujarat, where the soil and climate are suitable for it. Agar tree is on average 21 meters high and its trunk is about 1.5 to 2.4 meters thick. Its stem is almost straight and striped.
use of agar oil
Oud oil extracted from agar is used as perfume. It is used both in pure form and by mixing it with natural aromatic substances like sandalwood, musk, saffron and amber. It is one of the oldest and most expensive raw materials used in the perfume industry. Oud oil has also been used for medicines in China, India and Arab countries for centuries.
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