Trade Performance and Potential of Lemongrass Oil Market: a Global Prospect

Shyam Prakash Singh, V.K.S. Tomar, Sanjay Kumar, R.K. Srivastava


Lemongrass is an important essential oil bearing crop. It is successfully cultivated in tropical and subtropical regions of the world. In India it is commercially cultivated in different states. The production of lemongrass oil has proved quite remunerative to the growers and especially for marginal land holders. This study has merely focused on to estimate the trade performance and potential of lemongrass oil export over two decades by using the different statistical tools like exponential growth model, coefficient of variance and cuddy-della valle instability index. Results revealed that the domestic consumption and global demand of lemongrass oil has been increased and registered the positive trend. At present, India is major exporter of lemongrass oil with exporting to more than 80 countries. Between 1997-02 and 2017-20 the global demand of Indian lemongrass oil has been increased from 80.28 thousand kg to 2552.42 thousand kg. While, India earned the foreign exchange from lemongrass oil export has been increased by 413.65 lakh to 30874.49 lakh. Among the top nine importing countries or major destinations of Indian lemongrass oil contributed 81.62%, in which North America region: U.S. and Canada imported (44.18%); Europe: U.K., France, Germany and Spain (11.84%); Asia pacific: Australia, China and Singapore (4.08%).The compound annual growth rate both in quantity and value lemongrass oil have been registered 16.13 and 28.04 per cent it indicates good potential and higher profit for Indian lemongrass oil. The continuous increasing the domestic as well as global demand of lemongrass oil, has opened up wide opportunities for earning of foreign exchange, promotion of Indian aroma industry. The increasing area under the cultivation of lemongrass provided the employment opportunities of rural people and especially for agricultural labours and resource poor peoples. It is also provided the year-round income, better option of crop diversification and mechanisms for utilization of marginal land.


Constituents and Consumption, Growth and instability index, Marginal land, Trade, Import destination.

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