Agarwood tree price in India 2024

Agarwood tree price in India is much higher than any other tree. According to agriculture experts, it is beating the sandalwood tree price as well. It is listed in the list of expensive trees in India. You will get some important information including price, number of trees, resin and profit margin along with best practices here.  

Quick notes– Agarwood price per kg in 2024 is around Rs 2 lakh to Rs 5 lakh. 

Agarwood tree price in India 2024

Agarwood tree price per kg is around Rs 2 lakh to Rs 5 lakh depending on the resin quality and quantity. The tree needs 8 to 10 years to grow and produce good resin and 12 years for high-value resin quantity. On average one tree produces around 4 kg resin and by planting 500 trees some successful farmers achieve revenue of 9 crores. 

Agarwood cultivation information

You can buy one sapling for around Rs 100 or lesser according to the availability in your region. Agarwood tree takes around 08 years to grow and produce a good amount of resin. However, 12 years are ideal for better resin. Resin is a black liquid substance containing the most important market value in comparison to its wood. In one acre of land 700 to 900 plants can be planted but for better growth 300 to 500 plants are recommended with the spacing of 2.5 x 2.5 meters. 

By investing around 6 lahks to 8 lakh one can achieve a huge profit of around Rs 9 crore, view the complete project report here. Yes, you are reading absolutely correctly, you might wonder why people are not doing agarwood cultivation in India on a wider scale. My dear friend, there are some drawbacks of the tree which you must know before starting its cultivation.

First of all, it is not permitted in all states. Secondly, it’s very difficult to achieve a good amount of resin from the tree. If you can overcome these problems then this cultivation is for you and this post will help you to understand its growing conditions. 

Read thisAgar tree project report

Before any mindset, I would request you to visit the forestry department of your region and ask for the permission requirements. After getting permission you can do a little survey of your farm boundaries by planting a few plants whether this agarwood grows in your city’s climate conditions or not.

Once done with the experiment you can start the cultivation. To my global readers, I would say yes you can start agarwood farming in the Philippines and the USA or other places as well. To get a good idea you need to know about temperature, soil and climate conditions which are given in this post.

Agarwood resin process natural

Agar tree needs at least eight years to form a good resin. In the forest whenever the tree is damaged by any animal or natural calamities the tree releases saliva to recover the wound or damaged parts. This saliva is none other than a dark black resin and a tree only releases resin when it gets damaged from any part. Four to nine months are required to form a resinous wood in the tree. After the baking process of wood on fire its soft scent is also taken.  

In case you missedAgarwood inoculation process

Fungal inoculation to form resin manually 

A drilling machine is used to injure the 8-9-year-old agar tree from various parts. After that fungus is induced in the xylem of aquilaria. To get the fungal infection on the tree wound area medicine is being transmitted through the wound. After getting a job pre-releases precious SAP which is very precious and called resin. After a few months, resinious wood formed which is used in the perfume industry and for making precious things like agarbatti sticks.

Agarwood farming best practices 


Aquilaria malaccensis – Cultivated in the North India area.

Aquilaria khasiana – Cultivated in the South India area.

Planting time

You can plant this tree throughout the year but July to September are preferred due to good rainfall.  

Climate conditions 

Temperature – 20°C to 30°C.

Humidity – 75% – 85%.  

Light – 56% to 75%. 

Water requirement 

Agar trees need a very good amount of water and easily grow in heavy rainfall regions. Yearly 200 mm to 400 mm rainfall is required for this thirsty tree.


Sandy, red, clay, yellow podzolic and loamy soil is required.   

Read this oneHow many macadamia trees per acre and farm income

Agarwood trees per acre 

350  to 500 trees are recommended; however, 700 to 900 trees can also be planted.

Spacing – For 700 to 900 trees 2m x 2m and for 500 to 700 trees 2.5 m x 2.5 m spacing is required.

Propagation method 

This tree can be propagated by seeds and cutting. 

Agarwood tree growing time

8 to 10 or 12 years. 

Agarwood yield per tree 



How long does an agarwood tree take to mature?

Agarwood tree growing time is between 8-12 years.

How many agarwood trees per acre should I plant?

350  to 500 trees.

What is the agarwood price per kg in 2024?

Rs 2 lakh to Rs 5 lakh per kg.

Where is the agarwood tree found in India?

It is mostly found in the Assam state of India.

Which is the agarwood capital of India?

It is believed that Tripura’s capital Agartala is named after an agarwood tree.

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