DHARMAPURI: A massive decline in cultivation area, coupled with lack of demand for Palmrosa oil and its poor pricing, has come as a massive setback for the Palmarosa industry in Dharmapuri.
Palmarosa grass (Cymbopogon martinii) is an aromatic grass that is cultivated in rain-fed areas such as Dharmapuri and is primarily used in the production of essential oils, which are marketed to other districts and are much sought after by cosmetic industries, especially in the production of scents, shampoos, face creams and other products.
It is also used as a medicine due to its anti-microbial properties and for therapeutic uses such as relieving stress, anxiety and fatigue.
However, the lack of demand has led to a massive decline in Palmarosa cultivation area by nearly 50%, directly impacting cottage industries across the district. Farmers are urging the Agriculture Marketing Department to take steps to ensure the survival of these industries through direct procurement and fair pricing for the oils. Further, the weak monsoons have resulted in the failure of crop production, leaving farmers distressed.
Speaking to TNIE, G Chinnasamy from Annasagaram, a Palmarosa cultivator and oil producer, said, "Last year, rainfall was so low that the grass was unable to grow. They thrive on rain-fed lands, but with no rains it has no means of survival. Now, there is no means to get Palmarosa in Dharmapuri; the cultivation area has declined by nearly 50%. Five years ago, we had about 1,450 acres; now, we have about 410 acres of area under cultivation.”
“A tonne of Palmarosa grass has risen from Rs 2,000 to Rs 3,000 per tonne. We need about 1.5 tonnes to produce one kg of oil. With no grass, we sought the grass from other markets but the cost was unbearable. I personally went to Tiruvannamalai to procure Palmarosa grass, but including transport, labour and production cost, it totaled to Rs 9,000. There are no profits to be made, so I stopped manufacturing the oil."
A Prabhakaran, another oil producer, said, "We have about 350 to 400 units in Dharmapuri and Harur. The cottage industry is in decline due to the lack of marketing avenues. As most of our trade is conducted with private players, the price of the oil has not increased significantly in the past five years. Recently, the price of oil improved to Rs 4,000 per kg. But it is sold elsewhere for double. As Tamil Nadu has no market for Palmarosa, farmers are left with little option but to sell to middlemen. The government has provided only a few benefits to Palmarosa cultivators. We urge the state government to buy our oil and sell it in other markets for better prices."
Prabhakaran added that most boilers in the district are over 40 to 50 years old, and they also need assistance and subsidies for loans.
Speaking to TNIE, Deputy Director of Horticulture, AG Fathima said, "Over the past few years, the poor pricing due to the lack of demand has pushed farmers away from Palmarosa production. The failure of monsoons only aggravated the situation. The biggest problem is the lack of demand for Palmarosa oil; it has been so for the past few years."
Senior officials in the Agriculture Marketing Department said, "Palmrosa oil can be considered a raw material. Be it scent factories or cosmetic companies, they have to do further purification and processing to improve the quality of the oil. So the demand remains low. We have been urging farmers to create Farmers Producer Groups (FPGs) and create value-added products like incense, therapeutic oil or even cosmetics. However, the farmers are unwilling; they are content with only sales. There is just no demand or market."