In the history of fragrance, for thousands of years, agarwood has been known as "The Wood of the Gods." Many religious stories surrounding the magical use of Agarwood.
In the market, first-grade agarwood can cost as much as $100,000 per kilogram, making it one of the most expensive raw materials in the world.
Aquilaria malaccensis is a tree native to the rainforests of southeast Asia. The healthy heartwood inside Aquilaria trees is pale, odorless, and worthless. Nowadays, in order for this tree to produce any agarwood, it must first become infected with mold or called distillation process.
In natural rain forest such as in Indonesia, agarwood trees hit by lightning, broken by hurricane and other natural causes can stimulate agarwood from forming, while these trees healing them self by producing some kind of insulin which became agarwood oil and resin, and it take very long time, say hundreds of years. That's one of the reason why natural agarwood collected from deep rain forest are so expensive and rare.
Please watch below video from Aljazeera Channel regarding culture of agarwood use