All The Perfumes Of Arabia

All The Perfumes Of Arabia


BY VIJAY DANDIGE (http://www.khaleejtimes.com)

From source to end-user, the agarwood (oudh) trade sustains long-standing traditions of cultural, medicinal and religious significance throughout Asia. As possibly the most valuable non-timber forest product per kilogramme, the business it generates also contributes to the income of a variety of stakeholders, from harvesters, middlemen traders, exporters, re-exporters, to the distributors and vendors in end-use markets. The productive involvement of agarwood industry traders is, therefore, of paramount importance if the relationship between supply and demand of this fragrant wood is to be managed, so that the trade continues for the long term.

This was the essence of the talk, titled ‘International Trade of Oudh, the perfume of Arabia’, that James Compton, regional director, Traffic Southeast Asia, recently delivered in Dubai. The talk was organised by World Wild Fund (WWF), Dubai, as part of the Earth Day celebrations, and was hosted by Dubai Municipality at its City Hall in Deira.

James Compton is also an agarwood trade researcher from Traffic, the joint wildlife trade monitoring network of WWF and IUCN, the world conservation union. Traffic works to ensure that trade in wild plants and animals is not a threat to the conservation of nature. It has 24 offices covering most parts of the world, with over 100 staff, and works in close co-operation with the Secretariat of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). In his talk, Compton shared his experiences and Traffic's information on the global trade of agarwood gathered over the past 10 years.

He pointed out that the trade in agarwood dates back to 2000 years. Also known as aloeswood, eaglewood and gaharu, agarwood is a highly-prized wood and is used primarily for medicine, perfume and incense. Agarwood has been used for medicinal purposes for centuries in, for example, Ayurvedic, Tibetan and traditional East Asian medicine.

Agarwood perfumes comprise agarwood oil mixed with a carrier such as sandalwood oil. “Attar oil” for example, is a water-based perfume containing agarwood oil which is normally used by Muslims to lace prayer clothes. Agarwood essences have also recently been used to fragrance soaps and shampoos. Both agarwood smoke and oil are used as customary perfume in the Middle East.

Agarwood is the fragrant heartwood produced by species of the Asian Aquilaria tree genus. The agarwood resin is thought to be produced as a response to wounding or fungal infection of the heartwood. Thus, only a small portion of the mature trees, 10-20 per cent, produce the resin, and scientists till date have not been able to crack this code. Compton described examples of agarwood harvesting in countries like Malaysia, Indonesia, India and Papua New Guinea and import markets in Taiwan and Japan.

He cited Singapore's role as a re-export centre, serving the global market, as incredibly significant, both in terms of distribution and business revenue. The Middle East, primarily the Gulf States of UAE, Saudi Arabia, Oman, Bahrain, Qatar and Kuwait, together represent one of the most important centres of demand in the global market. Speaking about the trade volume, Compton observed, “While the agarwood grade volume may seem small when compared to mainstream timber trade figures, it is not small in monetary terms. He pointed out that Singapore's trade volume was 17,45,000 kgs between 1995 to 2003. At an average price of US$100 per kilo, the volume totalled US$ 1,745,000, 00.

And this was only from one species, according to Compton. Moreover, agarwood chips and segments may sell for several hundred to several thousand US dollars per kg. The price of oil distilled from agarwood is generally between five and ten thousand US dollars per kilogramme, but can be significantly more for agarwood oil of exceptionally high quality. Compton added that the high value of agarwood has also given rise to a host of ills, such as indiscriminate cutting and splitting of agarwood tress in search of the resin, over-harvesting and illegal trade, with the looming threat of over-exploitation leading to the commercial extinction of species.

Illegal harvests or trade have been reported in protected areas in Indonesia, from government plantations in India, as well as in Lao PDR, Malaysia, Myanmar, Papua New Guinea and Vietnam. Compton said this has necessitated certain corrective measures and regulatory moves on the part of Traffic. Accordingly, all major agarwood-producing species have been listed on CITES Appendix II to harmonise international trade regulations. “This is not a ban”, pointed out Compton, “but a move to conduct the trade legally and sustainable under permit system.” Under CITES, permits can only be issued if it can be confirmed that agarwood being exported was obtained legally and in a manner not detrimental to the survival of the species.

Compton added that Traffic is calling for more effective harvest and trade controls, including improved implementation of CITES requirements and better tools for the identification of species in trade. Traffic has urged agarwood-exporting countries to address urgent problems related to management, trade controls and research to safeguard the future of this valuable cultural and economic source. Indonesia has already introduced a quota system, to manage its harvest and export in terms of both legality and sustainability.

Compton said more needs to be known regarding the flow of benefits from agarwood harvests and trade in order to increase the opportunities and incentives for more effective management of species in trade. Traffic is also calling for a workshop to be convened to provide an opportunity for the variety of stakeholders affected by Aquilaria conservation, harvest and trade to share information and experience, as well as to promote cooperation. "Cooperation is essential if we are to be successful in ensuring the future of both Aquilaria species and the agarwood they produce," Compton said.