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History

Incense sticks, also known as agarbathi (or agarbatti derived from Sanskrit word Agaravarthi, gara = odour, agar = aroma, varthi = wound)

The oldest source on incense is the Vedas, specifically, the Atharva-veda and the Rigveda. Incense-burning was used both to create pleasing aromas and a medicinal tool. Its use in medicine is considered the first phase of Ayurveda, which uses incense as an approach to healing. Incense-making was thus almost exclusively done by monks.

The specific knowledge of incense as a healing tool was assimilated into the religious practices of the time – early Hinduism. As Hinduism matured and Buddhism was founded in India, incense became an integral part of Buddhism as well. Around 200 CE, a group of wandering Buddhist monks introduced incense stick making to China.

Source from wikipedia