AGARWOOD

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Context: The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) has recently made significant adjustments regarding the export of agarwood (Aquilaria malaccensis) from India.

 Details

• CITES listed Aquilaria malaccensis in Appendix II in 1995. This listing was intended to monitor and regulate trade to ensure it does not threaten the species' survival.
• The Review of Significant Trade (RST) process was a mechanism used by CITES to assess trade impacts and compliance with conservation goals. India successfully prevented the inclusion of Aquilaria malaccensis in the RST, a significant achievement in balancing conservation with economic needs.

CITES ●The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), also known as the Washington Convention, is a crucial multilateral treaty aimed at protecting endangered species from the threats posed by international trade. ●CITES was drafted following a 1963 resolution by the International Union for Conservation of Nature (IUCN) and was officially opened for signature in 1973. It entered into force on 1 July 1975. ●Countries that agree to be bound by CITES are called Parties. Although CITES is legally binding for its Parties, it does not replace national laws but rather provides a framework that Parties must implement domestically. ●CITES classifies species into three Appendices based on their level of threat and the controls required: ○Appendix I: Includes species threatened with extinction where trade is prohibited except under exceptional circumstances. Examples: red panda, western gorilla, and tigers. ○Appendix II: Covers species not currently threatened with extinction but that may become so if trade is not regulated. Trade is controlled through export permits. Examples: great white shark, American black bear, and bigleaf mahogany. ○Appendix III: Contains species protected in at least one country, which has requested CITES Parties' assistance in controlling trade. Examples: Hoffmann's two-toed sloth and sitatunga.

 Recent decision by CITES

• In April 2024, CITES notified a new export quota for agarwood from India, which includes 1,51,080 kg/year of agarwood chips, powder, or sawdust, and 7,050 kg/year of agarwood oil. This quota aims to facilitate legal trade while ensuring sustainable harvesting practices.

Economic and Social Impact

●The easing of export restrictions on agarwood benefits lakhs of farmers, particularly in Assam, Manipur, Nagaland, and Tripura. This development supports their livelihoods by allowing them to participate in a formal and regulated market. ●Legal Trade: The ability to legally export agarwood facilitates fair pricing. Farmers can sell their produce at market rates rather than through informal channels where prices might be lower. ●Reduced Reliance on Informal Traders: Previously, stringent export restrictions led many farmers to rely on informal traders, who often offered lower prices. Legalizing trade reduces this dependency and potentially increases farmers' incomes.

Global Impact

●India’s Major Role: India is a significant player in the global agarwood trade. By easing export restrictions, India reinforces its position in the international market, potentially influencing global supply and prices. ●Increased Costs Due to Informal Trading: Prior informal trading practices had led to increased costs in the global market, as unregulated trade contributed to price volatility. The new measures aim to stabilize and fair-price the global agarwood market.

 What is Agarwood?

• Agarwood, also known as oud or oudh, is a highly aromatic and resinous wood obtained from the heartwood of Aquilaria trees. It is used in various applications, including incense, perfume, and small carvings. The unique fragrance of agarwood comes from a resin produced by the tree in response to fungal infection.
• The scent of Agarwood varies based on several factors:
  • Species: Different Aquilaria species produce Agarwood with different aromatic profiles.
  • Geographic Location: The local soil and climate where the tree grows influence the fragrance.
  • Time since Infection: The duration since the tree was infected affects the quality and depth of the fragrance.
  • Harvesting Methods: The methods used to harvest and process the wood can impact the final aroma.
• It is a plant in the Thymelaeaceae family, found in several countries including Bangladesh, India, Malaysia, and Thailand.
• The yield of Agarwood oil varies depending on the species and tree, with an average yield of about 4 kgs per tree. The current market price for Agarwood is between 50,000.00 to 2,00,000 lakhs per kilogram, making it a highly profitable crop for farmers.
• Climate Requirements:
  • Agarwood trees grow in soils with a thickness of over 50 cm. They can grow in a variety of soil types including yellow, red podzolic, and sandy soils.
  • Best suited for hilly areas above 750 meters above sea level.
  • Optimal growth occurs within a temperature range of 20°C to 33°C.
  • Requires annual rainfall between 2,000 and 4,000 mm.
• The production of Agarwood is significantly influenced by soil quality, temperature, and humidity. Research is ongoing to determine the most favourable conditions for optimal Agarwood production.

 Formation Process

Infection and Resin Production

• Agarwood forms when Aquilaria trees (genus Aquilaria) become infected by a specific type of mold, Phaeoacremonium parasitica. This fungal infection triggers the tree to produce a resin as a defensive response.
• Initially, the heartwood of the tree is light in colour and lacks fragrance. As the infection progresses, the tree secretes a dark, fragrant resin, which causes the heartwood to become dense, dark, and saturated with resin.
• The resinous wood varies in color from yellow, orange, red, dark brown, to black, depending on factors like the infection’s duration and the tree’s response.

 Harvesting

• Natural formation of agarwood is rare, as only about 7% of Aquilaria trees in the wild produce it. To meet high demand, some plantations artificially inoculate trees to produce agarwood.
• The process involves introducing the fungus to induce resin production. This practice, though, can lead to "fake" agarwood, where the resin may not have the same quality or characteristics as naturally formed agarwood.

 Extraction of Oud Oil

• Oud oil is extracted through steam distillation. From 70 kg of agarwood, a maximum of 20 ml of oil can be obtained.
• The oil is highly valued for its complex and rich fragrance, containing over 150 identified compounds including terpenoids, agarofurans, cadinanes, and others.

 Significance

Historical Use

• Agarwood has been used for thousands of years across various cultures for its fragrance and medicinal properties. It is mentioned in ancient Indian texts like the Vedas (circa 1400 BCE) and the Hebrew Bible.
• Dioscorides described its medicinal uses in his Materia Medica (65 CE), including its role in freshening breath and treating digestive issues.
• In Japan, agarwood was referenced in historical texts like the Nihon Shoki, and remains a part of traditional Japanese practices.

 Cultural Importance

• Agarwood is highly prized in Hinduism, Buddhism, Chinese Folk Religion, and Islam. It is used in religious rituals and traditional medicine.
• In the Arab world, it is a common ingredient in incense used in mosques and is integral to the region's perfume culture.

Economic and Trade Aspects

• Agarwood is one of the most expensive woods globally. Prices can reach up to $100,000 per kilogram for high-quality agarwood, though adulteration is common, leading to lower prices in the market.
• The global market for agarwood was estimated between $6 to $8 billion as of 2013, reflecting its high demand and value.

 Conservation and Sustainability

• Overharvesting and habitat loss pose significant threats to agarwood-producing species. This has led to conservation efforts and international regulations to protect these species.
• It is a critically endangered species on the IUCN red list globally.
• Aquilaria malaccensis and other agarwood-producing species are listed in CITES Appendix II, which regulates and monitors international trade to ensure sustainability.
• To counteract the depletion of wild resources, agarwood plantations have been established. Successful cultivation depends on effective stimulation of resin production, with various inoculation techniques being developed.

International Union for Conservation of Nature (IUCN) ●Established in 1948, the International Union for Conservation of Nature (IUCN) is a global organization dedicated to nature conservation and sustainable use of natural resources. ●The organization focuses on data gathering, research, field projects, advocacy, and education with a mission to encourage societies worldwide to conserve nature and ensure equitable and sustainable use of resources. ●It aims to influence governments, businesses, and stakeholders by providing information, advice, and building partnerships. ●IUCN is known for the IUCN Red List of Threatened Species, which assesses the conservation status of species globally. ●With a membership of over 1,400 organizations from 170 countries, IUCN employs over 900 staff in more than 50 countries with headquarters in Gland, Switzerland. ●Every four years, the IUCN World Conservation Congress sets the global conservation agenda through member voting on recommendations and resolutions. ●IUCN has observer status at the United Nations and plays a role in implementing international conventions on nature conservation and biodiversity.

 Conclusion

• The recent CITES adjustments and new export quotas for agarwood from India represent a crucial step towards balancing conservation efforts with the economic needs of farmers. By providing a legal framework for trade and addressing previous restrictions' impacts, these measures aim to support sustainable harvesting practices and benefit local communities engaged in agarwood cultivation.

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PRACTICE QUESTION Q. In the context of Agarwood production, which specific part of the Aquilaria tree is utilized: A) The bark, which is processed after the tree undergoes natural senescence. B) The resinous heartwood, which forms as a defence mechanism in response to injury or infection. C) The leaves, which contain essential oils extracted for perfumery. D) The roots, which are tapped for their aromatic properties in traditional medicine.  Answer: B