We have observed the various aspects of Mentha Oil, Spearmint Oil, Piperita Oil
and Basil Oil cultivated in western U.P during the past year. The prices fluctuated on
day-to-day basis. In the whole show exporters and farmers were losers but traders,
manufacturers and stockiest were gainers. The main reason of losses to the exporters
was forward selling and losses to the farmer were mainly due to lack of funds at the time
of distillation to hold the stocks, so the farmers had to sell their oils at loss compared
to this landing cost.
Analysis of Oil separately :
Piperita Oil
Estimated Production as on 2004 - 1100 M.T.
In the last five years, farmers were getting attractive rates for the
Piperita oil that is why they cultivated a huge quantity of it. Even
the areas in which farmers used to cultivate Mentha crop they cultivated
Piperita crop and new farmers also cultivated Piperita crop in huge quantity as well.
Due to huge production of Piperita oil its price came down, lowest in the five years at INR 375/-
for Ist cutting -(4MF). Until Piperita oil IInd cutting -10 MF came to the market; the rate went
down to INR380/-. The purchase of Exporters, traders, and stockiest continued and the graph rate
of it started going up.
The agreements for the coming season of 2005 are being done between INR 510-520. But farmers are
still not interested to cultivate its crop because the recovery of Shivalik is more than Piperita
and speculations in the last one and a half month raised the market from 280 to 510 for Shivalik.
It is interesting to note that the new area in which Piperita was cultivated last year will not cultivate
this year. The farmers who have developed its root or who have been cultivating it continuously will cultivate
Piperita crop this year.
Shivalik
In the year 2004 estimated production of Shivalik was 15000MT. Due to excess selling of Shivalik by farmers in the season the rate went down to INR 265/- i.e. much below to its landing cost INR 325/-.
It was estimated that the production of Shivalik was beyond expectation so advance selling was done by Indian exporters. The arrivals of oil in July-August came to an end all of a sudden. The speculators become active, due to this the market shot up to its maximum value INR 520/-. Due to this the Indian exporters started facing difficulties to deliver the goods to their buyers and demanded grace time for deliveries. Buyers were also worried because their shipments were not coming from India. On account of this they started purchasing oils from new exporters of this line, in very small quantities, but on very high prices to meet their immediate requirements. This brought more vacuums in the market and an encouragement for market bulls. In the same way the holding of menthol bold crystals of 2000MT did accrue in Gwalior market, so price graph want higher.
The vacuum created by speculators was suddenly released after three months and short-term investors and also speculators benefited. The exporters had to dispatch by purchasing materials on very high prices but still not on time. That is why the exporters lost their goodwill in the international market and also had to bear economic losses.
But for the this year predictions are that, the production of Shivalik for 2005 is estimated more than the last year.
Spearmint Oil
As compared to last year, the production of Spearmint crop will go down this year; mainly because the farmers didn't get satisfactory prices for their Oils. The production of Spearmint oil in 2004 has been going down as compared to year the 2003 and it is expected that this process will continue in current year too because farmers are not getting right prices only the stockiest & trades are be benefiting.
The two main reasons are responsible for less production of spearmint in 2005 will be :
1. The unavailability of roots.
2. The availability of diseased roots.
On account of this the recovery of oil will be poor and this will ultimately be helpful to raise the market price of Spearmint oil.
MARKET UPDATE -
07/06/04
Piperita Oil
The production of Piperita Oil has increased by 25 % in the
year 2004 compared to last year because last year the farmers
have got the better price for the crop and have diverted their
interest more to Piperita crop, resulted in increase of
production. Moreover, This year the quality of crop is very
good and climatic conditions are still favourable, Only 10-15%
of the First cut is balance to come in the markets. The excess
Piperita oil is in the hands of the strong stockiest.
The current price is ranging between Rs.380/- to Rs.425/- at
Budaun / Mint markets. The expected crop this year will be about
1100 tons after completion of 2nd cut i.e. after 15th of July
onwards. Though the rains in the month of May have not affected
the 1st harvest but if their are heavy rains in the coming monsoon
then the crops of the 2nd harvest may be destroyed and in that case
the yield of the crops will fall and may result in hike of rates.
It is a very - very important factor. We can offer you lot samples
based on first crop. Kindly confirm your requirements with specs of
interest so as to offer & sample to you.
Spearmint Oil
The farmers this year have not shown any keen interest
for the plantation of Spearmint resulted in the short of crop
this year. The expected this year about 100 to 125 MT hence the
production of Spearmint Oil has decreased by more than 55 % in
the year 2004 compared to last year. The current price is
ranging between Rs.475/- to Rs.500/- at Budaun / Mint markets.
Mentha Oil
This crop is generated in the area of BUDAUN, CHANDAUSI, SAMBHAL, BARABANKI
and the production of this crop Oil round about 15000 To 20000 MT and this year planting area is same in comparison
with last year. It is said that planting may be 5% To 10% less in BARABANKI (U.P) but in other areas it is more so
total area is more or less same.The variety KOSHI planted in fields is almost 75% To 80% and balance is SHIVALIK.
The weather at the time of planting was good & favorable and expected. The crop will come around June 15th this year.
The market will behave around Rs.270/- per kg. To Rs.280/- per kg. in BARABANKI (L-MENTHOL 70%) & in SAMBHAL, CHANDAUSI
price is RS.290/- per kg. To RS.295/- per kg.(L-MENTHOL 72%). Please wait for further news as we are doing extensive survey in the fields.
MARKET UPDATE -
03/05/04
The production of M.Piperita oil was
expected around 25th April but due to unexpected
rain and the parliamentary election. We would get
the production on time inspiteof the rain which
occurred last weak was beneficial for the crop and
now the distillation will start around 15th
may.
MARKET
UPDATE - 12/04/04
Piperita Oil
On
the account of adequate rainfall, in the last
three years there has been abundant production of
Mint Oil in the areas of northern India,
particularly Western U.P. The farmers were able to
reap excellent production in both 1st and 2nd
harvesting of Mint Oil.
In
the year 2003 the farmers were able to fetch very
high returns in Piperita Oil . Therefore many
other farmers have also diverted their attention
towards this cash crop.
The
production of Piperita Oil has increased by 25 %
in the year 2004. As a result the production of
Spearmint oil and Mentha Oil has decreased
marginally. The experts have estimated the
production of approximately 700 MT. of
M.Piperita Oil in the 1st harvest. If the
atmospheric conditions are in accordance with the
crop's requirement then an estimated production of
400MT is expected in the 2nd harvest. Thus making
the total production to 1100 MT.
Keeping in mind the
bumper production the experts have opined that the
wholesale purchase rates of Piperita Oil after the
first harvest may vary between Rs. 420 to Rs. 440
per Kg. at Budaun. The bulk stockists will
definitely try to encash this situation because
for the last three years they have been observing
that the same oil was being purchased at a very
high rates slab i.e. between Rs.580 to Rs.650 per
Kg. In the 1st harvest and the 2nd harvest's
(Mentho-furan 10% base) rates had varied between
Rs.680 to Rs.800 in the last year. Keeping these
facts in mind the experts feel that this year the
rates of 2nd harvest may vary between Rs.525 to
Rs.550 per Kg.
Though the rains are
not going to affect the 1st harvest which is
scheduled in the month of May to June but if their
are heavy rains then the crops of the 2nd harvest
may be destroyed and in that case the yield of the
crops may be only to the tune of 25% of the total
expected production, thus making the rates to
shoot like a rocket. And its a well known fact
that the 2nd harvest of Piperita Oil in India is
very-very crucial.
A
particular big Exporter at India plays a great
part in the purchase field of M.Piperita Oil. If
that Exporter does not show its interest in
supporting market in purchasing of Ist cutting
Piperita then in that condition the market price
of this oil could get down below Rs.425(At Budaun)
/kg. Never the more but there could be lots of
other causes that may effect the market, for
example :
Getting less Mentha-Furans from the Oil.
Getting short Oil recovery from the crop on
distillation plants.
The diseases in the crop may also affect the
production.
The price of Piperita oil, which has been
expecting to be Rs.450 is, may prove like a
borderline and the variation of Rs.25 could occur
in any time.
In these prices the buyer could get the loss by
30 % and the seller by 70 %.
Spearmint Oil
Due
to short plantation of the crop its production
will be expecting only 100 to 125 MT. so its graph
will move up word continually from the very
beginning by the selling price of Rs.450 .
MINT
INDUSTRY - IN BUDAUN :
BUDAUN is a district Head Quarter
of Western Uttar Pradesh (INDIA). The climate of
the district is very authentic for the farming of
mint herb since 1975. The farmers of the district
are produce Mint crop on commercial bases. The
main crop of the place is as below :
Mentha - (Mentha Arvensis. L, Family-Libiate
) :
The Scientists have developed through
their continuous research 'GOMATI' a high
breed by selection for years together from
SIVALIK-88 through open-polyneted mathod
as well. Planting this crop in the month of
January and this crop sliding for the month of
May to August. This crop distilled by steam
Distillation. This crop L-Menthol received a
very nice source, from this breed L-Menthol 70%
to 75 % is obtained and Menthol Crystal, Menthol
Powder, De-Mentholised Oil, Peppermint Oil,
Liquid Menthol, Menthone & so many fractions
are manufactured. This crop is generated in the
area of Budaun, Chandausi, Sambhal, Barabanki
and the production of this crop Oil round
about 15000 to 20000 MT.
Mentha-Piperita - (Linn & Hudsvar,
Vulgaris Family Labiate) :
Besides Bareilly, Budaun Stands at the
second step in producing Piperita crop. Planting
this crop in the month of January and this crop
sliding for the month of May to August. This
crop distilled by steam distillation. The
percentage of Mentho-Furan in first cutting is
found from 2% to 5% and the percentage of
Menthol is from 30% to 34%. Similarly from
second cutting the percentage of
Mentho-Furan increases by 5% to 15%. In
the Menthol contains reduced from 30% to 18%.
The production of Oil is round about 800-1000
MT. and the greater part of it exported.
Spearmint-Mentha-Spicata- (Family Labiate) :
Produce of the crop is not found in other
districts except Budaun. Planting this crop in
the month of January and this crop sliding for
the month of May to August. This crop is the
right source of L'Carvone. Percentage of
L'CARVONE from first cutting is 54% to
58% and it comes down to 51% to 48% from the
second cutting. Excrete 80% to 95%
L'CARVONE is produced from fractional
Units & L'Limonene-95% for the
another finished product in this Oil . Spearmint
Oil also produce in China but Indian Spearmint
Oil is much better flavor than China.
Indian Basil (Ocimum-Basilicum-L) :
Budaun district is the single producer of
this crop. Planting this crop in the month of
August and this crop sliding for the month of
October to November. This crop distilled by
steam distillation. In Budaun the production is
round about 300 MT. and this is a main crop of
monsoon here. The Oil contains is from 17% to
21% of LINALOOL & METHYLE CHAVICOL
70% to 75%. Aromatherapy & indigenous
manufacturers for the isolation of Methyl
Chavicol 99.5% LINALOOL 98% & ANITHOL 99.5 %
purity (Ciss>0.150%) is manufactured. Apart
from this approximately 2 MT. of D'LINALOOL
RICH Basil is being produced and
OCIMUM-GRATISSIMUM-EUGENOL-RICH
production is under process.
Mentha Citrata, Jamrosa, Lemon-Grass Crop
is also being produced in quantity in India
Round about 150MT these crops.
All the above Natural Oils, Aroma
Chemicals, Isolates and Bold Crystals are being
produced in the district by 450 steam
Distillation Units and 10 Fractional Units. Four
Chilling Units are also there. From Quality
Control purposes there Six Labs with Gas
Chromatographic establishments are also there in
the district. To sum up it can be said with no
doubt that more than sufficient infrastructure
is available in the district for the production
and manufacturing of Mint Oils. Remaining
distance by Road one to one and half hour from
Chandausi to Sambhal respectively where
crystallization of Mentha Oil is being produced
in Huge Quantity by 600 Chilling
Units.
