Palmarosa Cultivation profit and economic analysis in current scenario of India

Updated: Jan 7, 2020

In different parts of India, aromatic cultivation has been encouraged by the Government of India through Aroma Mission. The farmers are migrated from regular crops to aromatic crops.

Through such government initiatives, Mint cultivation is a huge success in Uttar Pradesh. India stands first place for Mint cultivation in the global market.

Palmarosa cultivation is also encouraged by the government for past few years. The crop is cultivated in the states like Gujarat, Karnataka, Tamil Nadu and Andhra Pradesh some part of Orissa.

According to the research paper of 2014 Ref - the cultivation of palmarosa fetched a fair profit. The net returns over variable cost were about rupees 76074 per hectare.

But in the year of 2019, the price of palmarosa oil face a deep cut and touched the rock bottom price of 1500 rupees. This costed a severe loss to the farming community. Loss of 30000 rupees per hectare per harvest, lead to a greater loss of 1.5lac rupees per hectare per annum.

The independent variables like human labour, fertilizer, cultivation charges, planting material and distillation charges were negative, indicating significant impact on the returns from the crop.

The farmers around the India are migrating back to regular crop for better returns, causing the loss of sources of palmarosa for the end user and aromatic industries in greater impact.

Farmers appeal to the Government of India, in the restriction on importing of synthetic oil and also, want to set a fair price for the Essential oil that can address sustainability in Palmarosa cultivation. This will ensure better livelihood for farming community of aromatic crops.

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