Dharmapuri's Palmarosa Oil Industry Wilts as Farmers Abandon Crop

Producers say the situation has affected hundreds of small distillation units and threatens the survival of a once-thriving rural livelihood.

Palmarosa grass (Cymbopogon martinii) is traditionally cultivated in the rain-fed regions of Dharmapuri and neighbouring areas.

The grass is processed to extract Palmarosa oil, an essential oil widely used in the fragrance and cosmetics industry.

However, farmers say declining demand and the absence of a structured market have discouraged cultivation in recent years. Industry sources say the area under Palmarosa cultivation in the district has dropped significantly over the past few years, leading to a sharp fall in raw material availability for oil producers.

The decline has been compounded by weak monsoons, which have affected the growth of the rain-fed crop.

Farmers have urged the Agriculture Marketing Department to intervene and ensure fair pricing and direct procurement of Palmarosa oil so that the industry can remain viable.

Without government support, they fear more cultivators may abandon the crop in the coming years.

R. Murugan, a Palmarosa cultivator and oil producer from Papparapatti, said erratic rainfall has severely affected production.

"Last year, rainfall was extremely poor and the grass could not grow properly. Palmarosa thrives only in rain-fed lands, so without adequate rainfall the crop cannot survive. Five years ago, the cultivation area was around 1,450 acres, but now it has dropped to nearly 410 acres," he said.

Murugan added that the rising cost of raw material has made oil production unviable. "The price of Palmarosa grass has increased from about ₹2,000 to ₹3,000 per tonne. We need nearly 1.5 tonnes of grass to produce one kilogram of oil. When grass was unavailable locally, I travelled to Tiruvannamalai to procure it, but including transport, labour and production costs, the total expense came to nearly ₹9,000. There are no profits left, so I stopped producing the oil," he explained.

S. Ramesh, another oil producer, said around 350 to 400 small distillation units operate in Dharmapuri and neighbouring Harur, most of which depend on Palmarosa oil extraction.

"Most of our trade is through private buyers and middlemen. Although the price recently increased to about ₹4,000 per kilogram, the same oil sells for nearly double in other markets. Since there is no organised market in Tamil Nadu, farmers have little bargaining power," he said.

Ramesh also pointed out that many distillation boilers in the district are over 40 to 50 years old and require government support for modernisation.

Officials in the Horticulture Department said several farmers have gradually shifted away from Palmarosa cultivation due to uncertain returns and fluctuating demand.

Deputy Director of Horticulture A.G. Fathima said the combined impact of weak monsoons and declining demand has discouraged many cultivators.

Meanwhile, officials in the Agriculture Marketing Department said farmers could improve returns by forming Farmers Producer Groups and exploring value-added products such as incense sticks, therapeutic oils and cosmetic products.

They noted that the oil currently produced by farmers is often sold as a raw material and requires further refinement before being used in fragrance and cosmetic industries.

- IANS