Agarwood is a fragrant dark resinous wood used in incense, perfume, and small carvings. It is formed in the heartwood of aquilaria trees when they become infected with a type of mold (Phialophora parasitica). Prior to infection, the heartwood is odourless, relatively light and pale coloured; however, as the infection progresses, the tree produces a dark aromatic resin, called a agar (not to be confused with the edible, algae-derived agar) as well as gaharu, jinko, oud, or oodh aguru (not to be confused with bukhoor), in response to the attack, which results in a very dense, dark, resin-embedded heartwood. The resin-embedded wood is valued in East and South Asian cultures for its distinctive fragrance, and thus is used for incense and perfumes.
First-grade agar wood is one of the most expensive natural raw materials in the world, with 2010 prices for superior pure material as high as US$100,000/kg, although in practice adulteration of the wood and oil is common, allowing for prices as low as US$100/kg.
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