PRICES | agarwoodmineraloil

PRICE AND COST OF AGARWOOD MINERAL OIL

Oudh oil (Agarwood oil) is one of the most precious Essential Oils in the world. It is widely being used as a base component in many luxury perfumes. The Oudh Oil (Agar oil) is extracted from the Agar tree (Aquilaria Malaccensis) which forms a fragrant resin inside the wood upon infection with a certain kind of parasitic fungus (Phaeoacremonium parasitica). As Agarwood from the tropical rainforest is becoming increasingly rare, we have set up our own plantation in Malaysia some 20 years ago which ensures ecologic sustainability and worldwide legal export of the wood and related products, including all required documentation such as CITES certificate of origin.

Given the rarity and many health benefits, Agarwood (called ‘Gaharu‘ in Malaysia and Indonesia) is considered one of the most expensive woods available. Agarwood oil 12cc (1 Tola = 12ml) in the highest grade from certain sought-after locations can fetch prices higher than the price of Gold. The price of 1 ounce of Gold (31.1 grams) is currently around US$1,300 (July 2014). Aloeswood/Gaharu oil 12cc (1 Tola) from Malaysia can currently fetch prices up to US$1200 in the highest, purest quality “Grade A”, but depending on the supplier and if there is a supply capacity higher than the demand in the market (over-supply), the price can drop below US$1000 for 1 Tola of highest quality Oud Oil (Agar oil) from Malaysia. Agar (Gaharu/Oud) is worshiped for its excellent properties since thousands of years in all major religions and cultural traditions around the world. It is especially popular in Arabic countries such as Saudi Arabia, United Arab Emirates (Dubai), Oman and others.

Agarwood oil sells for more than $27,000 per pound but it is very potent, as a miniscule drop of the oil will release its fragrance for around eight hours. It is used as a base for perfume and has been described as being “woody and deep.” The wood used as incense costs $13,000 for a pound of standard quality wood. You would pay a lot more for the top quality wood or wood chips.

During Ramadan and Eid the Saudis spend over 600 million Saudi Reals on oud products and you can savour the fragrance as you walk through shopping malls or banks, and it is used in homes and mosques. A 12 gram bottle of oud oil costs upwards of $3,000 and a kilo of the incense will be somewhere in the region of $25,000.

The Agarwood oil distilled from raw Agar wood chips is rather pricey. A few Milli-liter of the oil can cost several hundred US$, depending on its quality, purity, fragrant smell and origin. The yield from distilling 100kg of precious Agarwood is less than 30ml Oudh oil only, making the Agar oil very expensive. The fragrant aroma of pure Oudh Oil from Agar wood chips can range from balsamic-sweet, spicy-bitter to woody-animally. The scent is mainly a result of the contained mix of many Sesquiterpenes and Epoxides, which also act as Pheromones(attracting the opposite gender).