India’s exports of the aromatic oil extracted from mint plants dropped nearly 60% in the past two financial years, while domestic production declined about 24% over four fiscal years. Acreage has shrunk as farmers shifted to other crops amid falling demand and increasing concerns, said industry executives. With increasing competition from the lab-grown chemical variant, they are concerned about the future of India’s natural mint industry.
“Synthetic mint (from which mentha oil is derived) has flooded the markets both domestic and international. It has replaced the natural product as it is a cheaper alternative,” said Vibhu Varshney, chief executive of Hindustan Mint & Agro Products, which manufactures and exports the commodity.
Mentha oil is used as a flavouring agent for candies, tea, as well as in pain relieving and respiratory drugs. Large buyers in the pharmaceutical, fast-moving consumer goods, confectionery and cosmetics sectors prefer synthetic mentha oil for consistent quality and cheaper prices.
Uttar Pradesh is the largest producer of mint. The plants mature in 90-100 days, allowing farmers quick cash flow. However, even small changes in rainfall or temperature can swing yields sharply, making farmer incomes uncertain.
At its peak, the value of India’s mentha exports was comparable to several traditional spices, said a government official who works with farmers. However, as the lab-grown variant grew popular, demand for the natural product became limited to where “natural” carries a premium, not in mass industrial use.
When global prices weakened due to competition from synthetic variants, farmers switched crops.Production of mentha oil has declined from 46,000 tonne in fiscal 2020 to 35,000 tonne in FY24, according to the Horticulture Statistics Division of Department of Agriculture. Natural mentha farming is input-intensive, highly price-volatile, sensitive to weather vagaries and pest cycles, said Gaurav Mittal, managing director of Aromatic & Allied Chemicals, which works with mint farmers in Uttar Pradesh.
“Despite increasing support from the government, mint farmers are not getting proper price for their produce as synthetic mentha has found favour with bulk buyers,” he said.