Oud is the heartwood produced by a number of Aquilaria species in South Asia. India, Indonesia, Malaysia, Vietnam, Cambodia, Thailand, Laos and Papua New Guinea are the main producing countries.
Formation of Oud occurs in the trunk and roots of trees that have been infected by fungus (Phialophora parasitica). Trees begin to produce an aromatic resin in response to this attack. As the infection grows, it results in a very rich, dark resin within the heartwood.
The process of infection and subsequent development of Oud is completely natural and needs 60-70 years to mature. Man has not yet found a way to artificially infect the plant or speed along the process. It is therefore expensive with the best quality coming from India. The Arab world with its increasing demand, has also escalated costs
After harvesting, Oud undergoes a tedious process of cleaning and polishing before it can be sold. On the counter you will see the more expensive grades as large, shiny pieces of wood while second grade Oud is relatively less shiny and available in smaller fragments.
The value of first-grade Oud is generally high. A whole range of qualities and products is on the market and the value depends on geographical location and cultural deposition. Prices range from hundred US dollars per kilo for the lowest quality to over thirty thousand US dollars for top quality resinous wood.