Agarwood - big demand in international market

Sadaharitha, a pioneer in the forestry industry, commenced growing Agarwood, a commercial crop that has great demand in the global market to produce perfumes and medicine.

The company embarked on this lucrative venture following three years of extensive research. Sadaharitha has planted over 150,000 seedlings in nurseries in Ingiriya.

Sadaharitha, Chief Executive Director, H.K. Rohana said that Agarwood is an expensive crop and has enormous potential for a vibrant export market which will bring in foreign exchange to the country. Agarwood is a homegarden crop that could help low income earners raise their income levels.

Sadaharitha has imported plants from Vietnam and Thailand and plans to sell around five lakhs under the initial phase of the project.

Agarwood is one of the most expensive wood in the world. Agarwood, also known as oud, oodh or agar, is a dark resinous heartwood that forms in Aquilaria Crasna and Gyrinops trees (large evergreens native to southeast Asia) when they become infected with a type of mould.

Prior to infection, the heartwood is relatively light and pale coloured; however, as the infection progresses, the tree produces a dark aromatic resin in response to the attack, which results in a dense, dark, resin embedded heartwood.

The resin embedded wood is commonly called gaharu, jinko, aloeswood, agarwood, or oud (not to be confused with 'bakhoor') and is valued in many cultures for its distinctive fragrance, and thus is used for the manufacture of incence and perfumes.

The value of agarwood exported from Singapore alone has been estimated to exceed $1.2 billion per annum, according to the Food and Agriculture Organisation of the United Nations.

Though the export, import and re-export trade of agarwood products is widespread among the various countries of South East Asia, Taiwan and Singapore lead the group.

While Indonesia and Malaysia are major exporters of agarwood products, other countries such as Australia, Cambodia, Canada, Hong Kong, India, Indonesia, Israel, Laos, China, Malaysia, Myanmar, Pakistan, South Africa, Thailand, USA and Vietnam are also in the export trade.

Due to the big demand and uniqueness of this special product, one kilogram of Agarwood chips ranges from $ 2,000 to $ 20,000 in the international market, while a kilogram of Agarwood oil ranges from $ 20,000 to $ 200,000.

In natural conditions, it takes a long period, eight to 15 years to generate Agarwood in Aquilaria trees.

But with new technology, it can be generated within two years.

Sadaharitha Plantations hopes to obtain the 'patent rights' for the agarwood technology from the University of Minnesota in the USA.

Since there is a big demand in the international market for Agarwood, Sri Lanka will have a great opportunity to produce Agarwood and supply the international market and thereby generate massive foreign exchange to the country.

It is anticipated that many industries will be set up relating to this product such as Agarwood oil, incense sticks (China burns 10,000 joss sticks per day), perfumes, medicines and other value added products.