Originally, Patchouli leaves were collected from Sumatra, baled and shipped to France (later to England and the USA). The main trade was done though Singapore and Penang. The leaves were then distilled on sight in the factories in these countries. Quality was good and easy to control, the oil was fairly light in color.

Gradually with the economic development of Indonesia and the excessive costs of transport, production of the oil began to move towards the source. The most famous production area is in the Aceh province. This is not as important today, but the oil from this area is still regarded as the best quality.

Leaves today are still baled and transported, but only to factories in the main cities where they are distilled in fairly large stainless steel stills using direct steam. As well as these factories, the oil is also distilled directly in the growing areas. This makes sense as Patchouli leaf is grown in very remote areas, on small plots in the shade of jungle trees.

These remote distilleries are very basic, usually consisting of a couple of 44 gallon drums stacked on top of each other supported by mud and bricks - one to hold the leaves and one to boil the water by direct fire. Some are built into very narrow ravines with the water being fed by bamboo pipes. The condensers are often just long iron pipes with water running over the top. It is often a long walk into these jungle areas, so it makes more sense to carry out distilled oil, rather than leaf. Generally these types of portable stills process 1 litre of oil per day and keep about 5 workers busy.

Patchouli oil, like a number of other oils such as Clove, is sensitive to iron. In these primitive stills it is very difficult to avoid contact with iron. The result is that the oil from this type of production (which is most of it) has a fairly dark yellow to reddish color due to the iron. Some connoisseurs of Patchouli, appreciate this colour and particularly ask for it. It is indicative of jungle or village production. Other users do not wish to have oil of this color (preferring almost clear), or find negative reactions to the iron in some of their blends. For instance, Clove (or the essential oils containing eugenol) will give an intense green color when mixed with Patchouli.