Higher acreage likely to fuel mentha crop output by 150%

The country is set to see a bumper crop of mentha this year on the back of higher acreage. The output may jump by over 150 per cent compared with the last year's figures of 18,000-20,000 tonne.

"We are expecting an overall output of 30,000 - 35,000 tonne, which will start hitting the market by the end of May," said Rajeev Agarwal, owner of mentha oil producing unit in Bareilly.

The consumption of mentha oil in the country is around 9000-10,000 tonne per annum. The country already has a carry forward stock of over 3,500 tonne.

According to commodity analysts, the increased acreage is because of the farmers' inclination towards mentha production as the crop fetched them better realisation last season. Sources opined that inter-cropping led to higher plantation. "In between potato crop, mentha crop has been sown this time," they added.

The rains in January and February in the northern part of the country also proved beneficial for the crop since it requires a good amount of water at its initial stage. The weather condition has been subsequently warming up to the optimum level, which is what the crop needs at this stage.

"The yield too is on the upside. We expect an average yield of 80-90 kg per hectare against 50-70 kg per hectare last year," said market sources.

Though the exact acreage is not known so far, analysts said that in Uttar Pradesh alone (the largest producer of mentha oil), the minimum acreage is 1,25,000 hectares and this can even go up to 1,50,000 hectares.

Across the country, the acreage is expected to reach 2,25,000 hectare. Haryana, Punjab and Himachal Pradesh are the other mentha-producing states.

The envisaged situation of plenty could well trigger a fall in the price of mentha oil. However, any such possibility may be offset by stockists or farmers opting to stock the commodity themselves, according to analysts. Mentha oil can easily be stored for as long as 7-10 years.

With new mentha crushing and processing plants coming up in Jammu and Kashmir and even in Himachal Pradesh, the processing of excessive production may not be difficult, said market players.

The available stocks of mentha in the warehouses of the commodity exchanges amount to around 500 tonne at present. October-December is the period when export of mentha oil reaches its peak.

Traders and analysts believe that after meeting the domestic and export demand, the country would be left with a carryforward stock of at least 6,000 tonne.

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GAINT LEAP

Last year, the output was around 18,000 tonne

Yield expected to touch 90 kg per hectare

Acreage to be around 2,25,000 hectare

The consumption of mentha oil in the country is around 9000-10,000 tonne per annum.