Agarwood cultivation profit per acre India | agarwood plantation project report pdf

Agarwood cultivation profit is huge. It is another hidden cultivation from most of the farmers and through this post I will try to put some light on agarwood farming profit in 1 acre.

Quick Overview - Agarwood farming profit per acre Rs 9,93,67,000, Cost per acre Rs 6,33,000, harvesting time 8 years.

This tree can certainly change the life of any farmer if it is practiced in correct way. 

Agar tree price per kg in India is Rs 2 lakh to Rs 5 lakh as per the resin quality and quantity. The tree needs 8-10 year to grow mature whereas mahogany tree needs 10-15 years to grow mature but both tree provides good investment opportunities in tree farming zone.

Agarwood farming in India

It is also known as liquid gold and mainly cultivated in Assam. Moreover, Orissa, Maharashtra, Karnataka and Gujarat farmers are also aware of its plantation investment and benefits. Agartala, containing the name Agar due to Agarwood.

India need to push this farming because farmers are yet (2023) not aware of this valuable tree farming. Moreover, government need to make a clear platform to promote some important tree farming and that should contain easy permission area.

The tree's Hindi name is ‘Agar’ and the scientific name is Aquilaria. It is believed that the name agar came from Sanskrit name ‘Aguru’. It is listed as an endangered plant. First grade agarwood is one of the most precious and expensive natural raw materials in the entire world. Its global market was estimated above 8 billion dollar way back in 2013 and it is growing rapidly. Agarwood farming profit in India is much more than any other crop or tree farming but you need to check whether the cultivation of this tree is permitted in your region or not.  

It is also called Aguru and the name of the tree is being used in incense sticks. Due to high class fragrance and aroma it is mainly used in aromatic products like incense and it has a huge demand in the perfume industry. The wood left after extracting the oil of Agarwood is used to make incense sticks (agarbatti). 

Agarwood plant information

This tree grows on an average, up to 40 meter height. After getting injured it releases a dark color sap that is called resin. Resin is released by the tree to recover the cut or damaged area and this resin is being collected by farmers because it has huge global demand as it is majorly used for making incense, high quality aromatic products and has huge demand in the medicinal as well perfume industry.

Read this - Agarwood plantation project report

Plant profile

  • Family - Thymelaeaceous. 
  • Scientific name - Aquilaria. 
  • Ayurvedic name - Agaru. 
  • Hindi name - Agarwood tree hindi name is Agar. 
  • English name - Eaglewood, Aloewood, Agarwood. 
  • Trade name - Agar.
  • Uses - Fragrant resinous wood and oil are used in medicinal, ayurvedic and perfume sectors. 

What is agarwood

Agar is a forest tree that usually grows at the height of 40 meters. It is also known as aloeswood, eaglewood or gharuwood. It is fragrant dark resinous wood used in making incense, perfumes and engraving. Resin is a highly clingy substance of plants. 

Resin is embedded in the heartwood of agarwood trees and it is formed after getting infected due to any cut, wound or snip. The tree gets infected with a type of mold and that mold is called phialophora parasitica, it is a type of fungi. After getting infected the tree releases resin to recover the damaged part.

It is the same process when the human body gets any cut and to stop the blood flow our body releases white blood cells and some other function is processed by our body. Like this plant also releases sap to overcome the injury and in agarwood this sap is called resin. As the infection spreads it releases dark black color resin and this resin contains all the price and value. These products are used in making perfume and after oil extraction the wood of the tree is used in making incense. 

Agarwood plantation project report

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Cost per acre

Plants cost

1 plant = Rs 30, Rs 45 to Rs 100. 

700 plants per acre.

Rs 30 x 700 plants = 21,000.

Planting material cost = Rs 21,000. 

Other cost

Land preparation cost = Rs 15,000.

Fertilizer cost = Rs 8,000.

Irrigation cost = Rs 15,000.

Drip irrigation cost = Rs 60,000.

Plant protection charges = Rs 6000.

Labor cost = Rs 20,000.

Miscellaneous cost = Rs 5000.

Total cost (1year) = Rs 150,000 (including plant cost).

Total cost for 8 years

Reduce one time cost from 1st year cost = Rs 21000 (plants) + Rs 60,000 (drip)= Rs 81,000.  

Cost = Rs 150,000 - Rs 81,000 = Rs 69,000. 

Cost for 8 years = Rs 69,000 x 8 years = Rs 5,52,000

Total cost = Rs 5,52,000 + Rs 81,000 = 10,53,000

Total cost for 8 years = Rs 6,33,000  

Agarwood yield per tree

1 Agarwood tree can produce approximately 4 kg yield.

Resin price per kg= Rs 2 lakh to Rs 5 lakh (depends on quality).

If 700 plants are planted and after 8-10 years only 500 trees are in good condition.

500 trees x Rs 2 lakh =10 crore. 

Net profit = Cost - Profit.

Net profit = 10 crore - 6,33,000.

Net profit = Rs 9,93,67,000. 

Note - So this is the agarwood cultivation profit per acre. Price may differ according to the market and time. There are lots of duplicate variety in the market so be careful while purchasing it. More importantly its farming is not permitted in every state by the government so you need to check the permission at your region. 

How to grow agarwood tree in India

Agarwood tree price in India is increasing month by month. To start the cultivation you need to gain some knowledge including variety, planting time, temperature, soil, agarwood plants per acre, plant spacing, fertilizer, harvesting, inoculation process etc. 

First grade agarwood falls under most expensive variety.  

Agarwood varieties  

  • Aquilaria baillonii. 
  • Aquilaria banaensis. 
  • Hirta.
  • Khasiana - India.
  • Malaccensis.
  • Microcarpa. 
  • Parvifolia. 
  • Rostrate. 
  • Rugose.
  • Subintegra. 
  • Urdanetensis.
  • Beccariana.
  • Brachyantha. 
  • Citrincarpa. 
  • Crassna. 
  • Cumingiana. 
  • Decemcostata. 
  • Filarial.

Types of Agarwood 

In India mainly two varieties of agarwood are cultivated and both are given below:

  • Agarwood aquilaria malaccensis - aquilaria malaccensis is cultivated in North India due to more cold tolerance capacity in comparison to khasiana. 
  • Aquilaria khasiana - Aquilaria khasiana is suitable for the south region of India due to the climate and soil support.

Read this - How to start agarwood cultivation in USA and Australia strategy

Agarwood tree planting time

  • July, August and September are the most preferable for seed germination. These months consist of good rainfall therefore it is advised to plant them during these months. 
  • However, you can plant them throughout the year but during July to Sep the seedlings adjust well with the soil due to the weather and rain. This tree is mostly grown in the north east jungles of India. It is a forest tree mostly cultivated in Assam. 

Agarwood tree growing time

Agarwood growth time is up to 10 years. Yes, this tree needs at least 10 years to mature. However, it can produce decent agar resin after 8 years as well.


  • Temperature should be between 20° C to 30° C. 
  • Humidity ranging from 75 - 85 % is good for growing.
  • Light 56 % to 75 % needed.

Water requirements 

Rainfall - 2000 mm and 4000 mm per year. 


Sandy soil, red, yellow podzolic and clay sandy soil, loamy soil. It usually grows well in hill areas i.e greater than 750 meters above sea level. 

Agarwood planting distance 

  • For 700-900 trees 2m x 2 m. 
  • For 500-700 trees 2.5 m x 2.5 m.

How many agarwood trees per acre

350 to 500 trees are recommended in 1 acre. However, 700 to 900 plants can be planted with a distance of 2.5 m x 2.5 m and 2 m x 2 m.

Land preparation 

  • Ploughing is necessary before plantation. 
  • After a couple of ploughing weed removal process is done along with cleaning of the field.
  • Dig the pits of 45 x 45 x 45 cm and feed them with FYM then expose these pits to the sunlight to kill insects.  
  • 15 % cow dung and 20 gram furadan can be added to these pits to prevent insect attack. 
  • Don’t allow stagnant water at your farm.
  • It causes plant mortality so be careful and be prepared for water logging problems. 
  • Select healthy seedlings at least 60-90 cm height. Short but healthy seedlings should be preferred over height. 
  • Avoid older seedlings to rescue the root coiling problem.

Fertilizer and manure 

  • Cow dung fertilizer for plants - Cow dung is one of the most important organic fertilizer that is used for soil fertility. 15 % cow dung in each pit can be added.
  • Furadan fertilizer - 20 gram furadan can be used to kill insects. 
  • Coco peat - It has oxygenated properties and it is also useful to loosen the tight soil. 
  • TSP and DAP - Triple super phosphate and Di- ammonium phosphate release enough phosphate to the plant. 
  • Organic farming - Organic fertilizer is advised especially in long run farming because organic fertilizer is a bit slower but at the same time they deliver the result from the root of the problem which results in better yield. However, you can do the mix of chemical and organic in the beginning but you should move to the organic during the time it will give you better agarwood oil yield per tree. Moreover, agarwood is used in aromatic substances and ayurvedic medicines therefore you will not get a good price for any low quality product. 

Propagation method 

It can be propagated by two methods seed and seedlings.

Seeds - It is necessary to plant seeds within 25-30 days otherwise they may damage. Before sowing the seed, dry them out in the sunlight for 8-10 hours. This should be done for 1-2 days. 

Cuttings - Select the healthy cutting of 60-90 cm height.

Agarwood harvest time

Agarwood harvesting time is 12 to 14 years. However, after 8-10 years the tree can be harvested. This tree is not permitted to harvest in many states so first you need to take permission from the forest department officer of your district. 

Agarwood inoculation process

Artificial inoculation technique is being used in the cultivation. Through this technique, agar is achieved in less time from the self-planted trees in comparison to forest trees. 

Fungal inoculation is process

  • In this process after 8-9 years the tree is being wound or cut intentionally from a few parts. Drill machine is used to aperture the tree part. 
  • Then fungi is being induced in the xylem of Aquilaria. 
  • Medicine is transmitted through the wound to get fungal infection on the tree wound area. 
  • This process is necessary because after getting infected the tree releases sap in the form of resin to overcome the wound and this resin is collected because it is very precious and sells at a very high price. 
  • Through the wounds of the tree, the inducer gets transported to other wounded parts of the tree.
  • After few months resinous wood forms. 
  • Resin is the saliva released by the tree to recover the damaged parts
  • Resin is dark in color and it is formed around the wound in the various parts of the tree including branches, roots and trunk.
  • It takes between 4 to 9 months to form resinous wood in the tree. 
  • Agarwood's soft scent can be taken after the baking process of wood on fire.  
  • After resin formation it is being collected by the farmers. 
  • When the wood sink in water it means it is the wound part of an agarwood tree. The wounded part of the tree that produces resin becomes heavy and sinks in water. 

Do you know - Agarwood inoculation process

Suggestion - By promoting the cultivation of forest tree government can made common man to participate in environment development. If farmers will cultivate these trees at their farm they can contribute in carbon credit and this will directly impact countries environment policy in good way. By promoting these precious tree cultivation government can also create large number of self employment and new agriculture material related startups.

Uttarakhand government can surely overcome the problem of mountain migration but for that government need to permit these or some other precious tree cultivation in their states. 

Conclusion - We are not saying to cut the jungles we are only saying every state government should permit their people to cultivate tree farming in their farm and government can get direct benefit of carbon credit which will produce good environment results.

Today India is one of the youngest country in the world moreover, India is known for farming and 60 % population is depended on agriculture but when it comes to economy they are at the lowest side instead banking and other sector are economically more settled but very less people are doing job in these sectors.

So, government need to think about agriculture sector as well, and if they will not permit and promote such expensive tree farming how farmers can compete with other sectors. Key point is when farmers will able to contribute towards GDP in a good scale then our GDP will 100% improve multiple times.


What is resin?

Resin is a clingy (gummy) substance of a plant which is convertible into polymers. Resin is a mixture of organic compounds. Resin is used to make aromatic products such as incense. It is majorly used in the medicinal industry, Ayurvedic medicines and in the perfume industry. 

How long agarwood trees need to produce resin?

In jungle resin used to come naturally after any damage through animals but in the cultivation this process is performed intentionally to collect the resin. Agar trees can produce resin after 8-10 years so this process is applied after 8 to 10 years. 

What is the price of 1 agarwood plant?

Rs 30 to Rs 100 accordingly. 

How much agarwood yield per tree?

The average yield produced by 1 tree is 4 kg.

What is the Agarwood price per kg in the Philippines?

One kg price in the Philippines is nearly P160,000 per kg.

What is Agarwood price per kg in the USA?

Nearly US $10,000

Agarwood price per kg in India?

1 kg agarwood price in India is between Rs 2 lakh to 5 lakh. This is the price per kg 2023 in India and the price will increase more with the time. 

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7 thoughts on “Agarwood cultivation profit per acre India | agarwood plantation project report pdf”

  1. Good amount of information. Really liked the way all aspects being covered.

  2. Assam Agar Woods… (India)
    For any query on Agarwood Products.
    1. Chips (Resin) high grade/ medium grade
    2. OIL
    please contact: +91 7002622584

  3. what will be the cost of wood after removing resin?

  4. Need e Book for Agarwood Plantation


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