company offering agarwood saplings with promised buyback and big returns, want honest opinion before investing money
4 Answers
Agarwood is, along with sandalwood and red sanders, one of the most common subjects of plantation investment scams. The pitch usually promises a fixed high buyback per tree after some years if you pay upfront for saplings, inoculation and maintenance. The problems are real. Resin formation depends on successful inoculation, which is not guaranteed in every tree. Resin grade and price vary enormously. Trade is legally regulated. And companies that collect advances often disappear or quietly change terms before payout. No honest seller can promise a fixed future price for a crop this uncertain. Before paying anyone, verify the land ownership, your legal rights over the trees, the felling and trade rules with the forest department, and whether the buyback is a legally enforceable contract or just a brochure. If they want big money now and guarantee returns later, treat it as a scam until proven otherwise.
A relative put money into one such scheme years ago and the promised buyback never came cleanly. Please do not lock your savings on a brochure promise.
If the inoculation fails the tree is just ordinary wood. They never tell you that part clearly. Ask them what happens if resin does not form.
They showed me photos of high oud oil prices to excite me. But the price of finished oud oil is not the price they will pay you for raw wood. Do not confuse the two.