Frankincense is derived from the resin of Boswellia species. The trees thrive in hot, arid climates with rocky, marginal soils. They are remarkably drought-tolerant and often found in the dry, hilly regions of Rajasthan and Madhya Pradesh. Political instability in Somalia has pushed buyers towards India and Oman. Fresh stock is only expected in September.

Frankincense oil production in India has been negatively affected by droughts. The yield is poor and low in thujene content, which is a key marker of quality. Carry-forward stocks have been exhausted and there is limited supply in the market. Farmers are prematurely harvesting the crop to meet the demand, resulting in inferior quality with low alpha-thujene levels.