Agarwood—often referred to as “liquid gold“—continues to be one of the most expensive and sought-after natural resources in the world. In India, where agarwood has both spiritual and commercial significance, the market for this fragrant resin has evolved drastically. As we enter 2025, the agarwood price in India is drawing attention not only from traders and perfumers but also from investors and farmers.
In this blog, we explore the current agarwood market price, key factors affecting it, and the forecast for agarwood in India for 2025 and beyond.
What Is Agarwood and Why Is It So Valuable?
Agarwood is the resinous wood formed in Aquilaria trees when they become infected with a specific type of mold. Over time, this infection triggers the tree to produce a dark, fragrant resin that is harvested and used in perfume, incense, and traditional medicine. The process is rare and time-consuming, making agarwood extremely valuable.
India is home to Aquilaria malaccensis, a species native to the North-East region, especially Assam, Nagaland, and parts of Arunachal Pradesh. Indian agarwood is highly prized in international markets, especially the Middle East, Southeast Asia, and Europe.
Current Agarwood Price in India (2025)
As of early 2025, the price of agarwood in India varies based on its grade, form (wood, oil, or chips), and origin.
Average Market Prices (2025)
- Agarwood chips (medium grade): ₹1.2 lakh to ₹3 lakh per kg
- High-quality agarwood chips: ₹5 lakh to ₹10 lakh+ per kg
- Agarwood oil: ₹8 lakh to ₹15 lakh per litre
- Agarwood tree (10–12 years old): ₹50,000 to ₹1 lakh per tree (depending on resin content)
These prices are influenced by domestic demand, export restrictions, and fluctuations in international markets, especially from buyers in Dubai, Qatar, and Saudi Arabia.
Factors Affecting Agarwood Market Price in India
Supply and Demand
The limited supply of naturally infected Aquilaria trees makes agarwood a rare commodity. As demand increases for natural perfumes and wellness products, prices are expected to remain high.
Sustainable Plantation Practices
The shift from wild harvesting to plantation-based agarwood production is helping regulate supply. However, quality differences between naturally occurring and artificially inoculated agarwood affect price points.
Government Regulations and Export Controls
In India, agarwood is listed under CITES (Convention on International Trade in Endangered Species). Exporting agarwood requires licenses and permits, which affects market fluidity and pricing.
Global Market Demand
Countries like the UAE, Japan, China, and Saudi Arabia continue to drive the global demand. As Indian agarwood is known for its superior quality, international buyers offer premium rates.
Agarwood India Market Trends (2025)
- Rising Domestic Demand – Indian brands are now incorporating agarwood into perfumes, incense, and skincare, increasing internal consumption.
- Private Plantations – More entrepreneurs are investing in agarwood plantations, especially in Assam and Kerala, driven by high returns.
- Technological Inoculation – Use of artificial inoculation techniques is improving the yield and predictability of agarwood resin production.
- Premium-Grade Oils for Export – Indian agarwood oil continues to fetch premium prices in UAE and Gulf countries due to its purity and strong woody aroma.
Agarwood Investment in India: A Lucrative Opportunity
The agarwood industry in India is not just for traders—it’s becoming a high-return agri-business opportunity. A single healthy Aquilaria tree, when properly inoculated and matured, can fetch lakhs of rupees. Many investors and farmers are seeing agarwood as a long-term, sustainable investment.
Key states like Assam, Manipur, Tripura, and even parts of Karnataka and Kerala are witnessing a rise in agarwood farming.
Future Forecast: What to Expect in 2025 and Beyond
- 📈 Stable to Rising Prices – Due to limited natural supply and increasing demand from perfume houses and wellness brands.
- 🌐 Growth in Exports – India is poised to become a major exporter of agarwood oil and chips, particularly to UAE and Southeast Asia.
- 🧪 Research & Development – Innovations in artificial inoculation will improve quality and reduce the time required for resin development.
- 🛍️ Retail Expansion – More Indian companies are launching agarwood-based products—from perfumes to essential oils and even teas—fueling domestic demand.
Where to Buy Agarwood in India?
If you’re looking to buy agarwood—either as an investment, for personal use, or for resale—it’s important to source from trusted sellers. You can buy agarwood from:
- Certified plantations in Assam and North-East India
- Online specialty stores with CITES-compliant certifications
- Indian and UAE-based perfume brands like Fatma Perfume LLC, which offers a range of high-quality agarwood oud products
With its timeless appeal and ever-growing demand, agarwood continues to be one of India’s most precious natural resources. Understanding the agarwood price in India and the factors influencing it can help traders, farmers, and enthusiasts make informed decisions.
As 2025 progresses, agarwood is expected to command higher market prices, offering excellent opportunities for those involved in its cultivation, trade, or luxury production.
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