With less planting and lower production, Indian peppermint oil will rise!

On June 6, essential oil producer Ultra International B.V. released the summer essential oil market report, which conducted an in-depth analysis of more than 90 essential oil products from 25 countries and regions. The following is a related analysis of essential oil products from India.

Basil oil

Harvest period: November to February

Declining inventories cause prices to rise. Because basil is a kind of herbal medicine with disinfectant effect, there is a great demand for basil essential oil.

Market price: USD 23.50/kg

Ginger grass oil

Harvest period: January to April

There is still inventory carried forward in the market. Therefore, the current market situation is not clear, and it will be more clear when the epidemic blockade measures are lifted.

Market price: 49.00 USD/kg

Lemongrass oil

Harvest period: July to November

The production and arrival of lemongrass oil in the market are low, leading to continued high prices.

Market price: USD 20.50/kg

Wild Peppermint Oil

Due to the epidemic blockade measures, the production of wild peppermint oil faces many problems. Although the government has opened fertilizer and pesticide stores, the local situation is still very difficult. Farmers cannot grow as usual, and they lack labor. Under the current circumstances, farmers are unable to sell their products, further increasing financial pressure. It takes some time to assess the impact of the embargo on crop production.

India uses a two-step method to grow wild mint. Before the announcement of the national blockade, the first step of planting was completed as planned. The second step is transplantation. The impact of the embargo measures cannot be ruled out at present.

Once the epidemic blockade is lifted, the demand for this product is expected to be large, because most customers' stocks are exhausted. After the logistics are restored, the customer will request immediate delivery. Currently, physical trading has been suspended, but the commodity trading platform Indian Commodity Exchange (MCX) is still running. MCX's trading volume is low, but spot market prices have risen sharply.

In the long run, prices will gradually stabilize and fall, mainly due to the decline in demand caused by the global economic contraction. In addition, temporarily banning raw chewing gum and mouth fresheners will reduce the demand for wild peppermint oil.

Market price: $19.75/kg

Harvest period: January to June

Once the blockade is lifted, prices will change with demand. Earlier, before the embargo was imposed, the supply and demand of rose grass essential oil were balanced. This leads to lower product prices.

Market price: USD 27.75/kg

Rosemary essential oil

Harvest period: April to July

In 2020, the price of pure European mint is expected to increase by 10%. This is due to various factors. First, farmers are unlikely to grow mint this year. Secondly, the carry-over inventory in the previous quarter was limited. Due to travel restrictions, the actual crop yield cannot be analyzed. The impact of low demand and reduced production on Indian peppermint remains to be seen. The price increase may be affected by multiple factors. The price of American mint is very competitive, which will restrain the price of Indian mint.

Market price: USD 39.5/kg

Sandalwood oil

Harvest period: March to November

All existing and current demand for sandalwood oil will be substantially adjusted. Due to the new COVID-19 epidemic, Indian sandalwood oil has been suspended. Even if production is resumed, logistics issues will make order fulfillment difficult.

Market price: 21.50 USD/kg

Spearmint oil

Harvest period: July to August

The COVID-19 outbreak has brought many challenges to farmers. The spearmint cultivation has decreased significantly and prices are expected to increase. Spearmint crops also face similar challenges as peppermint and wild mint. As production falls, prices are expected to rise.

Market price: USD 31.75/kg

Vetiver oil

Harvest period: all year

The global vetiver oil market is about the same. But before the economic recovery, India's import prices are expected to rise. The harvest season of vetiver was affected by the epidemic. Fortunately, the late harvest will not affect production. After returning to normal, the gap between supply and demand will be highlighted.

Market price: USD 310.00/kg