INTRODUCTION

Agarwood is the resinous part of the Agarwood tree, which is used for the purposes of medicine and fragrance. The origin of Agar trees is traced to the evergreen forests of Southeast Asia. They are abundantly found in the North Eastern states of India, and in countries like Myanmar, Cambodia, Malaysia, Indonesia, Thailand, South Korea, Philippines, Laos, Japan, and so on. They are naturally growing trees in places that resemble the Western Ghats of Odisha in climatic conditions and altitude.

Agarwood is the resinous part of the Agarwood tree, which is used for the purposes of medicine and fragrance. The origin of Agar trees is traced to the evergreen forests of Southeast Asia. They are abundantly found in the North Eastern states of India, and in countries like Myanmar, Cambodia, Malaysia, Indonesia, Thailand, South Korea, Philippines, Laos, Japan, and so on. They are naturally growing trees in places that resemble the Western Ghats of Odisha in climatic conditions and altitude.

The formation of Agarwood is generally associated with the mechanical wounding and/or natural fungal infection of Agarwood trees. Resin is secreted by the trees as a defense mechanism, and will be deposited around the wounds for many years after the injury, where the accumulation of chemicals will farm Agarwood. As only physiologically triggered Aquilaria tree can produce Agarwood, artificial techniques of producing Agarwood are currently going on in the Agarwood industry. The infected part of the tree, after its separation from the non-infected part of the tree, is processed into sweet-smelling oil and chips as incense for burning all over the world. Agar oil and wood are highly sought products around the world. Agar tress can offer lucrative global trade options to locals in the regions where these trees are found. Agar oil acts as a world-class perfumery fixative and is highly sought after and priced by European perfumers for making their best-grade scents. It acts as a stimulant, cardiotonic, carminative, aphrodisiac, alternative anodyne, antidiarrheal, antiasthamatic, astringent, laxative, stomachic and tonic.

Agarwood is one of the most expensive natural raw materials in the world. The price of Agarwood varies depending on the quality. While low grades of Agarwood may sell at the rate of Rs 500 per kg, superior grades of chips are sold at over Rs 1,50,000 per kg. The price of oil varies from Rs 1,500 to Rs 12,000 per tola. About 80 countries around the globe use Agarwood products. The export of Agarwood from Singapore market itself crosses over a billion US dollars annually. It is estimated that the current global market for Agarwood is in the range of USD 6 to 8 billion, and is growing by the year.

Quality Seedlings

While taking up Agar cultivation on a commercial scale, the choice of the best species of plants is very important to get the best grade Agarwood. When trees are harvested, they should be able to give a good yield, for which resin quality, harvest time, fast growth etc., are the key factors. Considering all these aspects, our company has identified good varieties of Agarwood and has been providing seedlings of the genetically traced variety called A-12 at a reasonable price. In order to avoid duplication by private nurseries, we have printed our brand name on each polybag of seedlings.

Following is some of the key points in the selection of seedlings

As Agarwood is a perfumery ingredient, each variety has a different aroma profile. Farmers have to plant the right variety that can produce Agarwood of good aroma.

  • The quality and quantity of Agarwood chips and oil depend on variety. There is a lot of price difference between each grade. Good income is possible only if the tree produces superior grade of resin.
  • Inoculation is successful only for specific varieties, therefore only varieties which respond to inoculation should be planted. Since inoculation is an expensive procedure, if unsuccessful, it will result in a waste of money.
  • The cost of transportation, planting, pitting, weeding etc., is the same for any seedling. So, if you calculate the cost of planting and maintenance for one year, there is not much difference in the total cost of plantation development for nursery seedlings and our genetically traced seedlings. However, when the trees are harvested after 8 years, if they do not have resinous Agarwood, all the efforts will go a waste. So, it is better to go in for the variety of seedlings which we provide.
  • There are 16 different varieties of Agarwood. On an average, out of every 100 trees, only 7 trees produce commercially valuable resinous wood. Seeds should be collected from good mother trees. Normally, seeds are collected from trees which are previously harvested, and new suckers are developed by regeneration, and then the seeds are used for germination to get the character of mother trees.

TECHNICAL GUIDELINES

At Agrotech Resources, the adoption of innovative technology has resulted in numerous modifications to the diverse aspects of the Agarwood industry. Technology plays a major role at every step, resulting in enhanced production and decreased production cost. With the right use of technology, Agrotech Resources produces superior quality products at reasonable prices, something that the industry looks forward to. The company has developed many in-house technologies with the active assistance of its sister concerns.

  • The company had developed most of its plantations in the unique inter-cropping system where 3 to 4 compatible crops are grown in the same place, with the right spacing, thus accounting for low production costs.
  • Plantations are promoted in ideal locations based on climate, elevation, soil fertility, topography, rainfall, water source etc. The company has introduced a genetically traced species to get better results in terms of productivity and quality.
  • The company scientists provide regular technical support to manage irrigation, fertigation, and disease and pest management.
  • The company’s research has led to the inoculation technology that produces less volume but better-quality resinous wood.
  • The company offers end-to-end solutions with advanced technologies in harvesting and regenerating the trees as well.

Field Inspections

  • The company carries out various activities to be in regular touch with the planters, which impacts plantation management.
  • Field officers will carry out periodical inspections to examine the growth of trees and recommend the necessary steps to be taken.
  • Field inspectors will visit each and every farm, once a year, to verify the crops.
  • Company scientists will provide regular technical support to manage irrigation, fertigation, and disease and pest management.
    • Farmers are guided in agricultural aspects, provided cultivation manuals, technical guidelines etc.
    • A diary for each farm is maintained with copies of one each with both the farmers and the company.
    • Field visitors, after examining the plantation, will note the information in the diary.
    • Farm diary with previous history will be useful in the analysis and estimation of various aspects of plantation management.

MEMBERS’ ANNUAL GENERAL BODY MEETING

We are in the effort of making this Agarwood project a collective, transparent, and progressive venture.

As the planters are also the shareholding partners of the company, care is taken to maintain transparency at each and every stage of our activities. An annual general body meeting is organised once a year, where all the issues are discussed, and important decisions taken, after considering the suggestions given by the planters. For the attending members, the company also provides information on various agricultural aspects, compatible crops, technical knowledge regarding inoculation etc.

~”We are thankful to all of you for joining hands with us in making this a successful endeavor. “~

We are in the effort of making this Agarwood project a collective, transparent, and progressive venture.

As the planters are also the shareholding partners of the company, care is taken to maintain transparency at each and every stage of our activities. An annual general body meeting is organised once a year, where all the issues are discussed, and important decisions taken, after considering the suggestions given by the planters. For the attending members, the company also provides information on various agricultural aspects, compatible crops, technical knowledge regarding inoculation etc.

AGARWOOD’ MAGAZINE & NEWS

We are in the effort of making this Agarwood project a collective, transparent, and progressive venture.

A quarterly magazine is circulated among the members of the Agrotech Resources organization, free of cost, to provide updates on the latest local and international news on Agarwood, as also news on markets, farmers’ opinions, agricultural management techniques, processing etc.

RESEARCH ACTIVITIES

The company has an in-house research wing engaged in agricultural and artificial inoculation technology development. We have collaborations with government forestry institutions and agricultural universities for research and development related to Agarwood. We are also associated with well-experienced overseas partners in the field of artificial inoculation and processing.

While we have collaborations with the Institute of Wood Science and Technology, Government of India, for technology development, the Institute of Wood Science and Technology of Forest, Odisha, is working on the development of artificial inoculation for mature trees. Our organization, along with the Institute of Wood Science and Technology of Forest, and The Department of Science and Technology (DST), Government of India, jointly funded the project for artificial inoculation technology using the local fungal strain.

Research activities are also on with government and private institutions to develop a comprehensive artificial inoculation technology and scientific and modern methods of cultivation. Associations are also in progress for research and development with the Horticulture Department, forest departments, agricultural universities, forestry colleges, medicinal and aromatic plant boards etc. We have collaborations with organizations and individuals with a vast knowledge and technology in the Agarwood industry around the globe. All these research activities are aimed at helping farmers in the better development of their farms.

RESINOUS WOOD PRODUCTION

In commercial Agarwood cultivation, it has now become possible to yield Agarwood even from 7- to 8-year-old (sometimes even younger) trees by drilling artificial holes in their trunks and infecting them. The main principle of all these processes is to drill holes in the tree trunk to inoculate a mixture of chemicals, organic compounds, or microorganisms.

ten different technologies for inoculation have been developed at Agrotech Resources. Some of the techniques are developed in-house with a comprehensive technical knowhow of artificial inoculation. And few technologies are also developed in fruitful collaborations with leading international companies. Such patented technologies are currently adopted in association with overseas partners at our plantations. Based on requirement, the company identifies mature tress to be inoculated each year by discussing with farmers who wish to start Agarwood production.

Further, the company has conducted research that has led to an inoculation technology which produces less quantity but better-quality resinous wood. It is an efficient method that resembles the natural phenomena where simple and cost-effective steps are adopted. The results, so far, have shown good quality resinous wood, similar to that of wild Agarwood in terms of chemical constituents and the essential oil content, with a strong fragrance, ideal texture, and desirable black resin.

The company promotes the crop in climatic zones that support the trees to be naturally drilled by insects and infected by fungi. We are training farmers to apply traditional inoculation methods to their well-grown trees themselves, to get better quality, and to save on costs as well.

HARVESTING ASSISTANCE

Based on requirement, the company identifies mature tress to be inoculated each year by discussing with farmers who wish to harvest their trees. This depends on the company’s forecast for sales, and the contract with buyers for the supply of products.

The right time for harvest is from February to March, and this may continue till June, depending on the commencement of rains. Our team will inspect the trees and provide advice on identifying the right trees that are ready for harvesting by examining the infection rate. The age or size of the tree trunk does not decide the harvest time of commercially grown Agarwood. Trees can be harvested only when the formation of resinous wood is complete. When Agarwood is grown as a commercial crop, harvesting has to be done at a specified time for certain trees, making it a constant operation.

Harvesting is done based on the method of inoculation followed for that particular tree. In general, trees which are inoculated for oil extraction will be harvested after 12 to 24 months. If trees are inoculated for chips, the harvesting time will be after 3 to 4 years, as longer the time before harvest, the better the quality.

On an average, if commercially grown Agarwood trees are inoculated when they are 7 to 8 years old, then they are ready for harvest around their 10th year. Going by this timeframe, returns from Agarwood trees can be expected 8 to 10 years after they are planted.

After the harvesting, the tree will be allowed to regenerate. Post harvest, we advise on the necessary requirements for regeneration, which will make the entire tree to regenerate so that the next crop will be earlier as compared to the first harvest. Similarly, a third harvest is also possible. We also advice on multi-layer harvesting of trees, that is harvesting the tree from the top in the 3rd phase. This will allow a better cash flow and regularity in income.

PROCESSING ARRANGEMENTS

The company is establishing a cluster of primary processing centres at dense-plantation zones where harvested trees are processed to different grades in the presence of growers.

As a first step, infected trees are harvested and transported to the nearest primary processing station which has a large number of skilled laborers. Here, trees are slit and infected, and non-infected parts are separated using indigenous tools. The infected wood is then graded according to industry standards as soft yellowish white material, average quality brown ones, and good black chips.

The company follows a multilevel processing system comprising a cluster of independent primary processing units, an oil extraction factory, and a warehousing, packing and forwarding center. At primary processing centers, steam distillation or hydro distillation is followed with catalysts to increase recovery. Low grade Agar oil and Agar wax are extracted from the uninfected wood parts, too.

The company has already set up traditional processing centers in association with our partners in the states of Northeast, in Assam, Meghalaya, Tripura, Mizoram and Nagaland. Depending on crop development and tree availability, the company is also setting up processing units in the states of Odisha.

FARMERS’ INTERACTIVE MEETS

Once a year, a planters’ meet is organized in crop-dense zones so that the farmers can have direct interaction with the management and scientists of the company.

  • The company carries out various activities to be in regular touch with the planters, which impacts plantation management.
  • Field day programmes are organized in well-managed farms to create an interactive platform to exchange knowledge on various aspects of cultivation and processing.
  • With the able support and guidance of promoters, progressive farmers, and well-wishers of the company, planters’ meets and workshops are held, where information regarding the company, Agar cultivation, and the market are given to farmers.

PURCHASE OF INVENTORY

From the growers, the company purchases processed Agarwood products at a realistic price based on international market rates. For any product, good volume and stable supply are the key factors. With this in mind, the company has developed over 10,000 plantations in order to maintain a stable supply with standard quality in the long run. Similarly, to be competitive in the market and to offer a commutative price, our plantations are developed in the unique, low-cost, tree-growing model of inter-cropping system so that the products are reasonably priced. In order to produce the best quality of resinous wood by encouraging natural infection, most of our plantations are developed in regions that receive a heavy rainfall, and enjoy warm summers and freezing winters, conditions that yield superior quality oil.

Customer satisfaction is the company’s primary focus, which will help farmers to sell their trees. We have already established standard clients and are continually working on developing new clients as well. We are associated with leading institutions across the globe for the sale of our products. We will sell the products to domestic and international clients with proper legal documents and with standardized packaging and forwarding system.

As planters are also the shareholding partners of the company, care is taken to maintain transparency at each and every stage, so that the products are of best quality, leading to optimal customer satisfaction. We offer the right product, of the right quality, at the right time, at a reasonable price, with a truly professional approach, proactive customer service, and convincing hands-on logistics.

INOCULATION TRAINING

  • The company provides all the information related to inoculation in these programmes.
  • Demonstration of inoculation techniques is given in this event.
  • Training will be given to workers who wish to learn inoculation.
  • Trees will be harvested for checking the performance of previous inoculations.
  • Guidelines will be given for harvesting and regeneration.

MODEL PLANTATIONS

The company has developed model plantations at various locations.

  • Model farms are established in association with progressive farmers.
  • Model farms include all cultivation models, both mono and inter-cropping systems.
  • Innovative cultivation of Agarwood or any other crop is chosen for model plantation.
  • In Odisha, about 1 to 5 model farms are established in each taluk.
  • The total number of model farms in Odisha and other areas exceeds 10.
  • Farmers in the model farms are service-oriented and happy to provide all the guidelines.
  • Farmers can visit such model farms and gain the necessary information.

FARM TOURS

  • The company organizes field trips for new planters to well-developed plantations.
  • Visitors can adopt the necessary agro-techniques in their farms, too.
  • In general, farm tours are organized for model plantations along with visits to places of tourist interest.
  • Farm tours are the best platforms to understand the agricultural aspects of Agarwood.
  • During such visits, all the necessary information on inoculation and processing aspects is provided.

MEMBERSHIP

  • Shares are allotted to farmers who have planted in the initial years of crop promotion, and they become the shareholders of the company.
  • The company allots one share for every tree planted, after taking care of all the legal formalities.
  • Membership is allotted to the farmers who have planted Agarwood in the recent years.
  • Farmers who become members are in a long-term association with the company.
  • For inoculation in the members’ plantation, the company invests full the cost of inoculation.
  • Members get all the services of the company such as field inspection, free magazines etc.
  • Members of the company are assured of a realistic purchase price and a transparent processing system.

A NOTE OF CAUTION

  • 1. Cultivate Agarwood only in an ideal climate.
  • 2. Keep the investment as low as possible.
  • 3. Plant only the right variety of seedlings.
  • 4. Adopt the right inoculation techniques.
  • 5. Have buy-back assurance with standard organizations.