The Wood of God, Agarwood popularly beckoned as Oudh, claims to be therapeutic, cardiotonic, aphrodisiac, stomachic, anodyne, aromatic mystical owing to its medicinal properties and is the golden goose of the industry.
The value of Agarwood is determined by the fruitful attack of the fungus that results in dark resinous heartwood with incredible smell known as Oleoresin. A scanty quantity of about 12 millilitres oil is extracted from the 20 kilograms of agarwood and this is the veracious reason for its hefty price in the industrial market. Agarwood or Aloeswood is worth ten times more compared to the precious sandalwood.
The Right Reasons to Invest In Agarwood Plantations
The natural growth of fungus takes roughly around 10-15 years. And the revenue attained can be marginally low like a few thousand rupees for a tree. But the agarwood industry witnessed a tremendous advancement with the introduction of artificial fungus treatment termed as Inoculation of fungus. This resulted in the commercial importance of agarwood production and more investors got attracted to the plantation and also started manufacturing agarwood-related products. The leaves, trunk, and barks of agarwood are used worldwide for the materialistic production of Oudh tea and accessories like bead rosary and beads bracelets.
Here we discuss 3 salient benefits for the increased investment in Agarwood production:
Less investment & High returns:
Cost-Benefit Analysis of 3,000 Agallocha trees over 20 years time period shows a total expenditure of around INR 7.5 Lakhs. The forecasted yield and income comprised of two phases. The yield of Dum quality wood of 20 years old tree trades at Rs. 50 per kg. Batli Mal or Kalagachi of another 20 years old tree sells at Rs. 2,000 per Kg. So the gross income is calculated to be INR 65 Lakhs over two decades. The localized procurement pricing shows that the global market would benefit more from the green economics and assures exceptional returns for investors.
No maintenance expenses:
The trees can also be planted in less fertile agricultural lands with the low water table and is categorized as plantations that require minimum mechanized tillage. Because of its rarity and adaptability to the climatic conditions, agarwood is easily maintainable and sought after investment sectors.
Less labour intensive:
Agarwood as the least labor intensive plantations that require little or no manual irrigation enables manufacturers to spend less on overall farming. That is, Agarwood production is an economical package that can withstand the pressures of fluctuating climate, investment hurdles and labour-centric approaches.
Why Indian Economy and Ecology benefits more from Agarwood
Agar ranks amongst the plantations best suited for Indian soil and hence it could be a booster for the economic empowerment of small, medium and large-scale manufacturers and the agricultural communities of India. The ecological benefit of agarwood plantation is that it reduces the carbon level and other greenhouse gases in the environment. Agarwood tree is well-known to store 7 tons of carbon per acre and such plantations combat climatic changes and environmental pollutions, thriving to attain sustainable green economies and a healthy ecosystem.