By TradeIndia Team in Business Tips — 14 Jun 2022

How To Start Lemongrass Oil Making Business?

Owing to its large citral concentration, lemongrass oil does have a distinct lemon-like odour (75-90 percent). A Citral concentration of 70% is the minimum commercial standard. The citral concentration and soluble in alcohol are the two most important quality checks. This is a necessary component of toiletry goods such as cleansers, bath salts, and the like. It's also used in the production of ionenes as well as artificial lemon flavour. Ionenes are used in the creation of artificial flavours, fragrances, and soaps, as well as a raw ingredient in the synthesis of vitamin A. We'll look at how to establish a simple lemongrass oil production company, and lemongrass oil price. The oil has a distinct lemon scent and is reddish-yellow to reddish-brown in hue. It's also found in medications including pain relievers, disinfectants, as well as insect repellent creams.

Market Potential of Lemongrass Oil Manufacturers

Lemongrass oil is popular with a lot of uses. As the market for aromatic cosmetics increases, so does the need for this oil. In addition, the Indian people are becoming more aware of the benefits of essential oils making becoming a lemongrass essential oil Dealer in India profitable. Moreover, the negative consequences of chemical personal care products are becoming more well recognized. India is the leading manufacturer of this oil on a worldwide scale.

In most developed nations, imports dominate the commerce of this oil. North America and West Europe are two of the largest importers. Japan, on the other hand, has contributed around 10% of overall demand. Lemongrass farming areas are expanding in response to the rising demand for this oil. Lemongrass production is becoming more popular among farmers. Establishing a lemongrass oil manufacturing is a financially feasible endeavour for entrepreneurs in this situation.

Compliance in the Lemongrass Oil Manufacturing Industry

This oil may be used as a raw ingredient in a variety of industries. As a result, it's a good idea to examine your state's laws before starting a firm. We've compiled a simple list of concerns here.

First and foremost, decide on the legal structure of your company and register properly.
Apply to the local municipality for a trade license.
The registration process for Udyog Aadhaar MSME is available. It's a choice. It does, however, assist in obtaining loans through the government's subsidy programme.
You'll have to register for an FSSAI license if you intend to sell the oils in flavouring food.
Make an application for GST registration.

Configuration & Machinery for a Lemongrass Oil Production Facility

The most crucial requirement is that the plant must be established nearby your lemongrass planting field. So that you may readily obtain the basic materials. A 1000 sq ft enclosed space is sufficient for a small-scale company. Check the electrical supply, as well as the water availability and transportation.

Lemongrass Farming Business Plan

The lemongrass plant is now a tropical annual that produces a fragrant oil. Lemongrass gets its name from the oil inside the shoot that has a lemon-like aroma. It's a tall, perennial sedge with a short rhizome that produces thick fascicles of leaves. So, let's look at the Lemongrass harvesting business strategy in more depth.

Lemongrass Growing Requires Certain Climatic and Soil Conditions

Lemongrass thrives at temperatures ranging from 10 to 33 degrees Celsius. For dryland lemongrass growing, the ideal rainfall range is 700 to 3000 mm, evenly spread year-round. It thrives on the sand to mud loam soils with only a pH range of 5.0 to 8.4 and adequate drainage. It thrives in tropical and sub-tropical climates with heavy rainfall (200–250 cm) and high humidity. It operates well up to 1500 metres above sea level.

Lemongrass's Origins and Distribution

South America, Australia, Europe, North America, the Indian subcontinent, and Africa are all home to the lemongrass plant. They grow wild in India in all areas, from water level to 4200 metres above sea level. India is home to several indigenous plant species. In Uttarpradesh, Assam, Kerala, and Maharashtra, the East Indian Lemongrass species grows naturally in India and is well-cultivated. Lemongrass from the West Indies is said to have originated in Malaysia as well as Sri Lanka. It's also cultivated in Brazil, Tanzania, Guatemala, China, West Indies, Congo, Thailand, Madagascar, Bangladesh, and India, and is widely diffused across the tropical setting. Lemongrass from Assam, Jammu and Kashmir, Madhya Pradesh, Sikkim, and Bengal are the most common varieties. In India's the Western Ghats, the Chinnar wildlife reserve grows the plant on a massive scale. Lemongrass is a rain-fed crop growing in Kerala's high-rainfall areas. However, it is cultivated as an irrigation crop in semi-arid tropical climates.

Lemongrass: Area and production

India now grows the Lemongrass crop on 3,000 hectares of land, mostly in the states of Karnataka, Uttar Pradesh, Kerala, and Assam, with yearly production ranging from 300 to 350 t/annum.

Lemongrass Has a Significant Economic Impact

The lemongrass oil price drives the economic impact had on the industry by the crop. Lemongrass plant leaves and blooming tops are used to make the oil. Due to a high proportion (above 75%) of citral inside the oil, it has a distinct lemon-like odour. This oil's distinctive perfume allows it to be used in the scenting of cleansers, soaps, and bug repellent formulations. Lemongrass oil contains citral, which is used in perfumes, cosmetics, and drinks. It also serves as a beginning material for the production of ionones, which are the precursors to vitamin A. Germicidal, therapeutic, and flavouring qualities are all found in Citral oil.

Agro-Climatic Requirements

At altitudes of up to 900 metres, the lemon grass crop thrives both in tropical and subtropical climates. Lemongrass cultivation thrives in a warm, humid climate with plenty of sunlight as well as 250 to 330 cm of rain per year, equally dispersed throughout the year. Temperatures ranging from 20 to 30°C, as well as enough sunlight throughout the year, are ideal for excellent crop yields. Lemongrass thrives in semi-arid climates with relatively low rainfall. Lemongrass thrives in medium-fertile soils with a modest watering system. Nicely drained loamy sand is ideal for the plant's development. It may be cultivated in a wide range of soil types. Wet soils and calcareous should be avoided since they are inappropriate for growing plants.

Uses of Lemongrass

There are a lot of lemongrass oil benefits. Let us go through a few of them:

Lemongrass oil is a supply of citral, but it's also utilized in pesticides, detergents, deodorants, polishes, and waxes because of its inexpensive cost.
The plant's oil is primarily utilized in the production of perfumes, hair oils, fragrances, and pharmaceuticals. It's antimicrobial.
Among the most essential resources for the production of vitamin 'A' is ionone, which is made from the Citral found in lemongrass oil. Ionone is utilized in a variety of confectioneries as well as liquors in addition to fragrance. Ionone can be made immediately using the oil or from the citral extracted from it.
The foliage and oil of Lemongrass are used to create medication. The plant is regarded as a vital herb in the mind-body therapeutic practice of Ayurveda in several regions of India.
Cough, the common cold, fever, convulsions, achy joints, discomfort, high blood pressure, & tiredness are all treated with it. It's used as a moderate astringent and to destroy microorganisms.

Planting Method for Lemongrass

Lemongrass may be reproduced both vegetatively and through seeds. It is advised that it be cultivated using slips formed by separating well-grown-up clumps for higher quality and production of oil.
In the first week of June or the latter week of May, lemongrass is planted. Cultivation may be done at any time of year under-watered circumstances, except in October and November.
The field is meticulously prepared and put outside into 6 m × 6 m sized beds before sowing. Both phosphate and potash are fully absorbed into the soil.
Nitrogen is given in equal-sized split dosages, the first during planting, the second after a month, and the final dosage after each harvest. Grooves are formed at a distance of 60 cm, then slips are readied for planting by trimming all of the old roots & cutting all of the leaves. These are sown at a 60 cm × 60 cm spacing approximately midway between the sides of the hills.

Lemongrass: Harvesting and Yield

Lemongrass is ready to be harvested 90 days following sowing and is picked every 50–55 days after that. The grass is trimmed 10 cm over the ground level, and depending on the climatic circumstances, 5 to 6 cuts might be taken every year. The crop could be left in the field for 5–6 years, dependent on the climatic and soil conditions. Either one-two copies are obtained in the first year, depending on the planting season, and three to four cuttings are available from the second-year forward. Fresh leaves, as well as dry or semi-dried leaves, are harvested at 60-day intervals. The crop should not be permitted to blossom excessively because this lowers the total yield.

The collected plant leaves could be kept in the shade for up to three days without affecting the oil output or quality. Well before the distillation process, these are cut into smaller bits. From fresh Lemon Grass, we can anticipate an herbage output of 15 tonnes per harvest and recovery of 0.5 percent oil. From the second year onwards, the oil output might be approximately 400 kg per acre. The type of seed used and how the crop is managed might affect yield. During irrigated circumstances, lemongrass yields 250 to 300 kg oil as well as a net income of Rs. 75,000–90,000 per hectare per year, whereas rainfed circumstances provide 60–80 kg oil and a net income of Rs. 18,000–24,000 per hectare annually. On ordinary, 25 kilos of oil per hectare can be acquired in the first year, as well as 80-100 kg of oil each year from the second to sixth year if well retained.

FAQs: Lemongrass Oil

Q. Is there profit in the lemongrass market?

Ans. Lemongrass oil is now sold in two markets: Cochin as well as Mumbai. Agents from processing & exporting firms visit the producing region, inspect the crop's condition, and work out a deal with the supplier. As a lemongrass essential oil Dealer in India, you could be making a great profit.