Only 40 per cent of the demand for Agarwood – ‘Aqularia Crassna’ – a key ingredient in producing most expensive perfumes worldwide, is met by the current production levels in various countries. Sadaharitha Plantations Ltd, a Sri Lankan company, is now aiming to penetrate into this 60 per cent balance demand by cultivating this plant [...]

The Sunday Times Sri Lanka

Agarwood promoted as an investment amidst concerns over losses by other plantation investors

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Only 40 per cent of the demand for Agarwood – ‘Aqularia Crassna’ – a key ingredient in producing most expensive perfumes worldwide, is met by the current production levels in various countries.

Sadaharitha Plantations Ltd, a Sri Lankan company, is now aiming to penetrate into this 60 per cent balance demand by cultivating this plant in this country, promoting and encourage it as an investment.As a further step toward educating the public on the growing of Agarwood, Sadaharitha held a media briefing in Colombo last week.

H.K. Rohana, CEO, Sadaharitha said that the production of this wood has been in some parts of the world since around 1,000 years and among the large scale producers are countries like Vietnam and Laos.

He said the production of Aqularia Crassna is done scientifically by inserting some chemical into the stem of the tree and the patent right for commercially harvesting of Agarwood is owned by Prof Robert Blanchettte of University of Minnesota, USA. The natural harvesting, he said, of Agarwood would be 1-2 per cent, the methodology adopted by them would yield around 60-70 per cent.

He said that the seeds of this plant are imported from Vietnam and they have entered into a partnership with Wescorp, Australia – the largest trader of Sandalwood and Agarwood in the world to ensure returns to investors.

The Wallapatta tree produces a very small quantity of this expensive substance in a natural process where, when a branch cracks, a germ gets in through that cavity and then produces the substance.

He said that cutting down Wallapatta trees is banned in Sri Lanka.Sadaharitha appears to be worried of the confidence of the investors in the backdrop of a failure of a company dealing with similar investment options.In reply to the queries by the Business Times, Mr. Rohana said that they have more than 12 years’ experience in this type of industry and are dealing in Mahogany and Sandalwood. Further, they are a company with a capital base of Rs. 100 million and are expected to go public. He said that they have launched the Agarwood project one year ago after a research conducted four years ago in 2010.

They have so far sold 300,000 plants of Agarwood, he said. He said that before the plants are issued, they are grown in their nurseries for eight months.

He said that Sri Lanka has the best soil and rain conditions to invest in agriculture, but still the country do not have a proper plan for agriculture.

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