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Anna Peter

MUMBAI, March 21

IT is a sickly sweet smelling plant that is representing new hope for Indian farmers and perfumers. The cultivation of `Patchouli', used to produced essential oils for perfume and related industries, is being grown in Karnataka, largely in and around Mangalore.

The domestic essential and aromatic oils industry is a Rs 500-600 crore business but the oil has applications in perfumes, agarbattis, soaps, deodorants, detergents, talcum, and even has a flavours segment that caters to various foods and pharmaceutical products.

Globally, the trade in medicinal and aromatic plant products is estimated at $60 billion. Worldwide annual consumption of patchouli oil is 1,000 tonnes and domestic consumption accounts for 70-80 tonnes. The plant is largely produced in Indonesia and farming it in India for exports can prove to be extremely lucrative.

According to Mr Govind D. Kelkar, Managing Director, S. H. Kelkar & Co Pvt Ltd, patchouli farming experiment has received a good response from farmers since normal farming activities do not provide them with a steady income. Ironically, bumper crops means the prices of produce will slide.

He said Keva Biotech Pvt Ltd, an SHK subsidiary, was guaranteeing farmers Rs 20 per kg of dried biomass — roughly translating to Rs 40,000 for one acre of a patchouli crop — and technical expertise provided free.

The company charges a nominal Rs 2 for rooted cuttings and Rs 5 for rooted and hardened tissue culture plants as there is a lack of enthusiasm among farmers when these are provided free. The small fee has galvanised farmers into making its cultivation pay.

Patchouli crops can be harvested 3-4 times a year and the same plants used for three years. These can be replaced by stem cuttings from the original plant. The company's research found that drip irrigation doubled yields.

In fact, the Indonesian forest fire, foreign exchange fluctuations, high import duties and uncertain supply are reasons why research and development has been done to develop the plant. The company is doing research on possibilities associated with plants such as Stevia (a non-caloric herb that can be used in ayurvedic preparations and as a sweetener), anthuriums, geraniums, Mentha citrata and more.

It also maintains a large greenhouse and a four-acre garden that profiles the growth of the patchouli plant in different stages, various herbs, and irrigation methods.

According to Mr Satish Soman, Assistant Manager, Administration, the chalan farmers receive while buying root cuttings and tissue cultures of the plant is proof enough to receive payment for whatever they produce. The reason farmers are asked to use Keva's roots and cuttings is because the plant produces exactly 3 per cent oil per 100 kg of dried biomass. By using the same strain, the company is also assured of quality.

And, unlike conventional crops, patchouli is not eaten by cattle and requires no pesticides.

He added that only the top six branches are harvested along with the leaves and shade-dried. The leaves are separated from the branches; and, oil is extracted from the leaves and the branches pulverised for use in agarbattis. The company transports consignments of over one tonne for free. The project has been on for about two years.

Mr Kelkar said though patchouli production had only touched 10 tonnes, his firm's consumption was about 30 tonnes a year. It was exporting some of its produce to medium-to-small players in France and added that the company was hoping to raise this to 500 tonnes.

SHK devotes 2.5 per cent of its turnover to R&D and, according to Mr Kelkar, this is the reason it has been able to stay competitive and progressive. The Group commands 55 per cent of the domestic essential oils market and exports its products to 40 countries.

He said the company was getting a better price for patchouli from French customers despite supplying them on a small, but regular, basis.

The company also supplies raw materials to Givaudan Roure, a multinational creator of fragrances and flavours that has set up a facility at Jigani, Karnataka, and a Creative Fragrance Centre in Bangalore. And, Mr Kelkar said, because of its association with the Indian subsidiary, the parent has also started sourcing some raw materials from SHK.

Post-2005, he said, the company's patents would not be affected and its future would depend on how much of the export market share it could capture. SHK, he said, had had no collaborations whatsoever and the reason for its success thus far was because of its in-house R&D efforts.

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