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Mentha oil production in India is likely to decline by 20 per cent, due to lower plantings of the aromatic herb in the past two years, due to falling prices.
In fact, huge carryover stock from last year, coupled with huge capacity build-up of synthetic mint, a substitute, had discouraged farmers from planting more this year.
Trade sources estimate the area under mentha planting at 17,500 hectares this season, 20 per cent down, resulting in a proportionate fall in mentha oil production this year.
Traders estimate oil production at 55,000 tonnes in 2013-14, of which 40 per cent was unsold and carried over for 2014-15. Mentha oil rose to an all-time record of an average of Rs 2,570 a kg in March 2012, after a massive shortage in availability was reported despite huge global demand. Since then, it had declined steadily, to reach Rs 716.50 a kg this July, trade sources said.
In India, mentha oil is derived through distillation of mentha arvensis, largely grown in Uttar Pradesh, parts of Punjab, Himachal and Bihar. It is used for flavours and fragrance in the pharmaceutical, fast moving consumer goods (FMGC) and cosmetics industries. Mentha oil is also used extensively for gutkha manufacturing, cosmetics (toothpaste, mouthwash, shaving creams, shampoos), chewing gums and household cleaning products. “The price has been subdued for a while due to a ban on gutkha and prices will continue to remain subdued going ahead. Production of synthetic mentha oil on a global level has increased, which has also caused demand to remain on the lower side,” said Harsh Agarwal, director of Emami, one of the largest FMCG users of mentha oil.
A ban on gutkha production and consumption has been imposed by many state governments.
The crop requires considerable moisture, distributed through the entire growing season. As the roots do not penetrate deeply in soil, light and frequent irrigation is useful.
India exports 25,000-30,000 tonnes a year of all forms of mentha oil. China, Europe and America are big importers. Within Europe, Germany and Netherlands are major users.
In fact, mint products account for a large volume of spices exports, with a share of 29.7 per cent in 2012-13. Mint product exports grew from $235 million in 2008-09 to $415 mn in 2012-13, said the Spices Board of India.
