The Growing Market Demand for Manufacturing of Essential Oils in the State Of Himachal Pradesh
Considering the lucrative and guaranteed returns, the farmers of Himachal Pradesh have switched from conventional food crops to aromatic plants. The Himachali farmers have started to find refuge in the cultivation of aroma plants as the income from the conventional plants has become uncertain due to unfavorable weather conditions such as hail and frost, and rampant animal attacks. Because these plants tend to be hardy, and are less susceptible to animal attacks. Most significantly, aromatic plants tend to be popular in the agrochemical, flavoring, perfume, pharmaceutical, cosmetics, and condiment sectors.
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CSIR (Council of Scientific and Industrial Research) has executed the Aroma Mission, under which plans to increase the cultivation of aroma crops yielding essential oil up to 5000 hectares by the year 2022 have been developed. CSIR’s IHBT (Institute of Himalayan Bio-resource Technology), Palampur has started 16 distillation units of essential oils in the state of Himachal Pradesh managed by the farmer’s cooperatives. These units are steam-operated and are run on fire-wood, which is an abundantly available fuel resource in the villages. The agency also distributes seeds free of cost.
The market demand for essential oils across the globe is estimated to rise at a CAGR (Compounded Annual Growth Rate) of 8.6 % from the year 2019 to 2025. As per the current reports, more than one lakh hectares (55%) of cultivated land in Himachal Pradesh amounting to agricultural and horticultural crop losses of more than 324 crores has been recorded. To restrain such losses, CSIR’s IHBT is helping to revive the economic conditions of the farmer’s community and increasing their income by introducing highly valuable indigenous aromatic crops such as wild marigold, damask rose, muskbala, sea wormwood, and lavender for essential oil extraction as elaborated below.
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The organic farming methods, favorable conditions, higher revenues, cost-effective oil extraction procedures, promotional schemes, and substantial market demand offer a viable business opportunity in manufacturing of essential oils in the state:
- Wild Marigold (Tagetes minuta): It is a highly popular aromatic crop with great commercial value. The components of the oil are β-ocimene, tagetone, limonene, dihydrotagetone, and tagetenone. The wild marigold essential oil is used as a food coloring agent. It has several therapeutic applications in the treatment of respiratory ailments, stomach infections, wound healing, and skin-related problems. It is used as an anti-spasmodic, anti-septic, anti-parasitic, sedative, and insecticide.
The wild marigold cultivation in Himachal Pradesh has resulted in the production of 7.6 tons of essential oil generating revenue of INR 5.56 crores offering benefits to 861 farmers. Himachal Pradesh is one of the leading producers of wild marigold essential oil amounting to 4 tons annually in the nation. The key marigold cultivating regions in the state are Chamba, Seraj, Gogardhar, Banjar, and Rampur.
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The efficient team of NPCS with a finely sketched plan assures higher returns. We offer all the fundamental details as per project requisites.
- Damask Rose (Rosa damascene): Damask rose is known for its highly valued essential oil and is generally used in cosmetics, perfumery, soft drinks, beverages, ice creams, and as a fragrance constituent in lotions and ointments, etc. The damask rose extract has been shown to have hypnotic effects, anti-oxidant effects, and enables regulating blood sugar. It is grown in the Kullu and Palampur districts of the state.
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The Damask Rose grown in Himachal Pradesh is of high quality and has higher fragrance notes. The leading perfume brand (Chanel) has also signed a deal to procure these roses annually, thus further facilitating damask rose cultivation in the state. The return from rose cultivation in the state is more than INR 40, 000 per hectare.
- Muskbala (Valeriana jatamansi): Muskbala is a significant medicinal plant grown wildly in the state of Himachal Pradesh. The plant has tremendous medicinal properties in treating several diseases. It has been used since ancient times in Ayurveda and Unani medicines. The root of the muskbala plant yields 0.3-2.1% (v/w) essential oil and has a balsamic, woody, musky, and sweet aroma.
The Muskbala essential oil has applications in the pharmaceutical, fragrance, and flavor industries. The Himalayan valerian rhizome and root yields oil in the range of 0.5 – 2.12 %. The average oil yield obtained is approximately 15 kg/hectares. The current market price of valerian essential oil is about INR 25000 per kg.
- Sea wormwood (Artemisia maritima): The plant is distributed across the Kulu valley, Lahul & Spiti regions of the Kangra district in Himachal Pradesh. The Bhots (ethnic group) of Himachal Pradesh use the root juice for external application in treating boils. The decocted leaves are administered orally to eradicate abdominal parasites. The sea wormwood essential oil is used for curing digestive ailments, insect bites, skin infections, osteoarthritis, and wound healing. The sea wormwood yield is in the range of 0.3% to 0.5%. There is immense scope for the commercial cultivation of sea wormwood in the cold desert regions of Himachal Pradesh.
- Lavender: The lavender plant is grown in the hilly slopes of Himachal Pradesh. The lavender essential oil is primarily used in cosmetics, fragrance, and perfumery sectors. However, there has been a growing interest in the use of lavender essential oil in aromatherapy. IHBT has introduced the lavender plant on a semi-commercial scale in the Chamba district of Himachal Pradesh, identified as an alternate location for cultivation.
Considering the introduction of a new crop and the growing importance of the oil, a study was conducted to determine the profitability of the crop. Thus, accelerating the cultivation of lavender crop and setting up of distillation units for oil extraction would be a profitable idea to execute in the state.
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NPCS is one of the fore-running brands in the industrial world offering technical consultations. Having explored the market for ‘Essential Oils in Himachal Pradesh’, manufacturing of the same would reap greater returns and help in reviving the agro-economic conditions in the state.
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