What is Agarwood? More Expensive Than Gold! The Secret Behind Rs 1 Crore Price

Published : Feb 03, 2026, 02:47 PM IST

The world's priciest wood is Agarwood, and it's even more valuable than gold. Ever wonder why this wood, fetching over ₹1 crore per kilo, is called 'Liquid Gold'? Let's dive into why it's so precious.

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Liquid Gold found in the forest.. This tree yields crores only when it gets sick

We think gold or diamonds are the priciest, but a natural wood called Agarwood (or Oud) will surprise you. It can fetch up to ₹1 crore per kilo, with rare types costing even more.

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What is Agarwood? This is the secret behind its origin

Agarwood comes from Aquilaria trees in Southeast Asia. When the tree gets infected by a fungus, it produces a dark, fragrant resin to protect itself, turning it into valuable Agarwood.

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Found in only 2 percent of trees

Not all Aquilaria trees produce Agarwood. Only 2-7% get naturally infected, a process taking 10-30 years. This rarity drives huge global demand. Natural wood is valued far above artificial.

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Kynam: The world's most expensive grade

The rarest, highest-quality Agarwood is Kynam. A single gram costs around $10,000 (₹8.5 lakh). Just 10g is worth more than a kilo of gold. 2kg of Kynam once sold for a record ₹154 crore.

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What are the uses of Agarwood? This is its importance

Called the 'God of Fragrances,' it's used in luxury perfumes. It's vital in Hindu, Islamic, and Buddhist rituals and used in medicine for stress. Assam, India is a top global exporter.

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Agarwood: An endangered treasure

Immense demand has led to illegal logging, pushing Aquilaria trees toward extinction. Strict international laws now regulate its trade, making natural Agarwood a luxury for billionaires.

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