AGARWOOD Aquilaria agollocha, A. malaccensis and A. crassna.

Agarwood

Agarwood is a resinous substance occurring in trees of the genus Aquilaria (a member of the Thymelaeceae family), a fast-growing forest tree which can be found growing from the foothills of the Himalayas to the rain forests of Papua New Guinea. Outside its native habitat, agarwood is best known in the Near East and Japan.

The most important resin-producing species of Aquilaria are A. agollocha, A. malaccensis and A. crassna.

A. malaccensis is protected worldwide under the (CITES) convention. A. crassna is listed as an endangered species by the Vietnamese Government.

Agarwood has been used for centuries as incense, for medicinal purposes and in perfumery.

First-grade agarwood is one of the most expensive natural raw materials in the world, with prices in consumer countries ranging from a few dollars

per kilogram for very low quality material to more than US$30 000 per kilogram for top quality wood. Agarwood oil fetches similarly high prices. (Source: Agarwood “Wood of Gods” International Conference.)

Agarwood is a one of the most valuable minor forest products of the Southeast Asian tropical forests. In Viet Nam, agarwood is produced from the heartwood of rarely available natural Aquilaria crassna trees. In the authors’ fieldwork in Viet Nam, a natural A. crassna was found in Khanh Hoa province. Information on agarwood exploitation and production was gathered by interviewing local people. The results showed that some of the local people earn their living through agarwood production, but owing to overexploitation the natural resource for this valuable plant has declined dramatically in the past decades, while the demand for the resource remains constant or even increases. The cultivation of A. crassna has started in several places in the country as an initiative for conserving this endangered but economically important plant species. (Source: Quan-Le-Tran, Qui-Kim-Tran, Kouda-K, Nhan-Trung-Nguyen, Maruyama-Y, Saiki-I & Kadota-S. 2003. A survey on agarwood in Vietnam. Journal of Traditional Medicines, 20(3): 124–131.)

For more information, please contact:

Institute of Natural Medicine, Toyama Medical and Pharmaceutical University, 2630 Sugitani, Toyama 930-0194, Japan.
Edible insects in Ngao Model Forest, Agar Aquilaria agallocha Roxb. – a promising non-wood forest product of Bangladesh

Agarwood (Aquilaria agallocha Roxb.) is believed to have originated from the Indian hills of Assam. This species is synonymous with A. malaccensis. It is traded in several forms, ranging from large sections of trunk to finished products such as incense and perfumes. Agarwood chips and flakes are the common tradable forms. Agarwood oil is a highly valuable and frequently traded product. The major constituents of agarwood oil are sesquiterpenes, the chemical structure of which makes them very difficult, hence extremely expensive, to synthesize. Although synthetic agarwood compounds are used to produce poor-quality fragrances and incense sticks, there are currently no synthetic substitutes for high-grade incense or oil. The price of agarwood chips is US$20 to $60 per kilogram; agarwood oil commands US$956 to $7 059 per kilogram on the international market. Agarwood has also been used for medicinal purposes for thousands of years, and continues to be used in Ayurvedic, Tibetan and traditional East Asian medicine. The use of agarwood oil for perfumery extends back several thousand years in the Near East. In India various grades of agarwood are distilled separately before blending to produce attar (scent). Minyak attar is a water-based perfume containing agarwood oil, which is traditionally used by Muslims to lace prayer clothes. Agarwood essences have recently been used as a fragrance in soaps and shampoos. Agarwood incense is burned to produce a pleasant scent, its use ranging from a general perfume to an element of important religious occasions.

In Bangladesh the major agarwood-based industries are located in the Kulaura thana under the Moulavibazar districts, where about 100 agar-based industries are located. Most (90 percent) of the entrepreneurs managed capital from their own sources, 6 percent from moneylenders as loans and the remainder from bank loans. Most of the entrepreneurs claimed that owing to the unavailability of capital they were unable to expand their industries. The majority of the industries (64 percent) were under single ownership while the rest had joint ownership. It was found that a remarkable portion of the industries (72 percent) were set up on their own land and the remainder on rented land. The average number of the workforce in these industries was 16, with both skilled and semi-skilled labourers being employed. Raw materials in these industries are collected from homestead forests; there is, therefore, an acute shortage of raw material owing to the absence of commercial agarwood plantations. The Forest Department has recently initiated agar plantations to meet the demands of agar-based industries. Furthermore, entrepreneurs lack modern inoculation techniques and treatment plants for agar oil production.

Agar oil is an export-oriented product and the demand is very high on the international market. The current annual demand for agar oil in the study area is 120 000 tola [1 tola = 10 g], but the supply in the market is only 84 000 tola. The large gap in the demand/supply situation is due to the scarcity of raw materials, fuelwood and also because of government support. Production costs include raw materials, labour, fuelwood and other costs (rent, electricity). In the study area, per unit (tola) production costs were 3 900 taka. The selling price of agar oil per tola is about 5 500 taka and the net income per unit is 1 600 taka [US$1 = 58 taka].

Proper marketing, considered to be the prime constraint for the development of agarwood-based small-scale cottage industries in Bangladesh, needs to be developed considerably. Industry size, the poor financial condition of the entrepreneurs, along with scattered distribution of the industries pose a serious threat to marketing. Entrepreneurs play a significant role in the marketing of agar oil in the study area. In Bangladesh there is no established market for agar oil; the main market is in the Near East. However, small entrepreneurs have no access to that international market. Agents buy agar oil from small industry owners and send it for sale on the Near East market. The marketing of agar products on the international market is highly competitive as it is based on quality standards, advertising and product promotion.

Bangladesh is lagging behind in promotion and marketing; therefore, if we can overcome the prevailing problems in this sector, it is certain that agar-based industries will open up a new window in our small and cottage industries sector. (Contributed by: A.Z.M. Manzoor Rashid, Bangladesh.)

For more information, please contact:
A.Z.M. Manzoor Rashid, Assistant Professor and M. Qumruzzaman Chowdhury, Lecturer, Department of Forestry, Shahjalal University of Science and Technology, Sylhet-3114, Bangladesh.
E-mail: pollen_for@hotmail.com