The term lacquer originates from the Sanskrit word lāksh ā' (लाक्षा) meaning wax, which was used for both the Lac insect (because of their enormous number) and the scarlet resinous secretion it produces that was used as wood finish in ancient India and neighbouring areas.aw lacquer can be coloured by the addition of small amounts of iron oxides, giving red or black depending on the oxide. There is some evidence that its use is even older than 8,000 years from archaeological digs in China.