The agarwood tree, known for producing one of the most luxurious and sought-after resins in the world—oud—has become a symbol of value and rarity. In Sri Lanka, where natural resources are abundant and traditional herbal industries are thriving, the agarwood industry is beginning to gain traction. In this 2025 market overview, we’ll explore the current agarwood tree price in Sri Lanka, what influences the market, and what investors, growers, and buyers should know.
What Is the Agarwood Tree?
The agarwood tree, scientifically known as Aquilaria, is a tropical evergreen species primarily found in Southeast Asia. When this tree becomes infected with a particular type of mold, it produces a dark, aromatic resin known as agarwood oud. This resin is highly prized in perfumery, traditional medicine, and religious rituals, making it a global luxury commodity.
Why Is Agarwood So Valuable?
Agarwood’s value stems from:
- Scarcity – Only certain trees produce the resin.
- Time – It takes several years for agarwood resin to form.
- Use in perfumery – Agarwood oud is a key ingredient in many luxury perfumes.
- Cultural importance – In many cultures, especially in the Middle East and Asia, agarwood is used in ceremonies and rituals.
Its rarity and demand make agarwood more expensive than gold in many parts of the world.
Agarwood Tree Price in Sri Lanka (2025 Estimates)
As of 2025, here’s a general overview of agarwood tree prices in Sri Lanka:
- Young Agarwood Saplings (1–2 years old): LKR 800–1,500 each (approx. AED 9–16)
- Mid-aged Trees (4–6 years old): LKR 4,000–10,000 (approx. AED 45–115)
- Mature Infected Trees (10+ years): LKR 50,000–200,000+ (approx. AED 575–2,300+), depending on infection level and resin yield
Note: These are general market prices and may vary by region, plantation practices, and quality.
Factors That Affect Agarwood Tree Price in Sri Lanka
Several factors determine the value of an agarwood tree:
- Age of the tree – Older trees are more likely to contain high resin content.
- Infection quality – Natural vs. artificially induced infection methods greatly affect resin richness.
- Region – Trees from more humid and tropical zones of Sri Lanka typically yield better results.
- Government regulations – Export permissions, licenses, and conservation policies may impact pricing and profitability.
Is Agarwood Farming Profitable in Sri Lanka?
Yes, with the right knowledge and patience, agarwood farming can be highly profitable. Here’s why:
- Rising demand for oud in the global market, especially in the Middle East, UAE, China, and Japan.
- Climate compatibility – Sri Lanka’s warm, tropical climate supports agarwood tree cultivation.
- Long-term returns – Though slow, the returns can be high with premium-quality resin.
However, farmers must be prepared for a long-term investment, often waiting 8–10 years for ideal resin formation.
Uses of Agarwood Oud
The resin extracted from agarwood trees is used in:
- High-end perfumes
- Traditional medicine (Ayurveda and Unani)
- Religious rituals (burned as incense or bakhoor)
- Essential oils (agarwood oil)
Sri Lankan oud, while still emerging, is slowly making its mark on the international fragrance map.
Government Support & Regulations
In recent years, the Sri Lankan government has taken steps to regulate and encourage agarwood cultivation through:
- Issuance of cultivation licenses
- Training programs for farmers
- Controlled export permissions to maintain sustainable harvesting
Anyone planning to buy agarwood or invest in agarwood farming should ensure they comply with the Department of Forest Conservation and other regulatory authorities.
Market Opportunities: Dubai and Beyon
With Sri Lanka’s growing interest in agarwood, exports to high-demand markets like the UAE, especially Dubai, are increasing. Consumers in Dubai have a strong affinity for oudh-based perfumes, oils, and incense, which makes it a profitable export destination.
In fact, agarwood oud from Sri Lanka, when processed and distilled properly, can compete with Cambodian or Indian oud in quality—offering a more cost-effective alternative with a unique aroma profile.
Tips for Buyers & Investors
If you’re looking to buy agarwood or invest in a plantation in Sri Lanka, keep the following tips in mind:
- Verify authenticity – Ensure the wood is resinous and ethically harvested.
- Check documentation – Legal sourcing and export compliance are crucial.
- Test the aroma – Quality agarwood gives a deep, long-lasting fragrance when burned or distilled.
- Partner with experienced distillers – High-quality agarwood oil requires skill and experience in distillation.
The agarwood tree price in Sri Lanka reflects a growing awareness of its commercial and cultural value. As more investors and perfume houses look to source oud from sustainable and legal origins, Sri Lanka stands out as an emerging player in the global oud market.
Whether you’re a perfume enthusiast in Dubai, an investor exploring exotic commodities, or a farmer considering a new crop, the agarwood tree offers nature’s version of liquid gold—rich in aroma, history, and opportunity.
Buy Sri Lankan Oud From Fatma Perfumes. Premium Quality, 100% Authentic & Legally Sourced.
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