Page 134 - CW E-Magazine (20-2-2024)

Point of View

now in is third phase, involves nearly a dozen labs with complementary skills spanning development and popularisation of superior varieties
and agro-technologies; promotion of cultivation and processing; design & fabrication of distillation units; and process development and
chemical/biological transformations for production of high-value aroma chemicals.

Notable successes of the Mission include deployment of high-yielding, salt-tolerant varieties of vetiver and palmarosa in coastal areas;
drought-tolerant crops such as lemongrass; and, most recently, the ‘Purple Revolution’ in Jammu & Kashmir through lavender cultivation,
thanks in the main to the efforts of CSIR-Indian Institute of Integrative Medicine (CSIR-IIIM), Jammu. The lab developed the elite variety
suitable for cultivation in temperate regions; provided free quality planting material to farmers in several districts; installed 50 distillation
units (some mobile) for producing the oil; and provided support in marketing it.

Hurdles to watch for
The world is increasingly looking to natural isolates for flavours, fragrances, aromatherapy, herbal cosmetics and even pharmaceuticals,
due a perception that these products have better safety profile over their synthetic counterparts. Sophisticated consumers in Europe,
US and Japan are willing to pay a higher price for such ‘naturals’ and while the scientific rationale can be questioned, there is much to
be gained by recognising its existence and exploiting it to advantage. India’s share of the global market for natural isolates/chemicals is
already an impressive 14%, but emphasis on development of technologies such as fractional distillation and other isolation techniques,
bio-transformations, etc. will pay rich dividend.

Competition from synthetic aroma chemicals, however, cannot be dismissed, especially in price-sensitive markets. Fluctuating
supplies of essential oils, can lead to absurdly high prices, and have, in the past, forced F&F companies to leave them out of their palette and
substitute it with an array of synthetics.

In the case of menthol, the variability in output, the unpredictability in price, and, at times, in quality due to adulteration, have led to
growing markets for synthetic menthol – produced through the petrochemical route – particularly in more demanding applications like
pharmaceuticals. A large portion of Indian (natural) menthol is today consigned to flavouring tobacco and in pan masala – an end-use
that abounds in dubious financial practices.

Sandalwood oil – in which India was a leader till it lost the plot – is another case in point. The space vacated by India in this oil
(due mismanagement of plantations and consequent government-imposed restrictions) has been taken over by synthetic aroma chemicals
and by Australia, which offers sizeable quantity of ‘Indian’ sandalwood oil from large-scale organised and sustainable cultivation.
Regulatory challenges
There are many regulatory challenges that are also emerging that will affect the fortunes of the essential oils industry. In much of the
developed world, and especially in Europe, legislation is being put in place which could severely restrict the range of ingredients – both
natural and synthetic – that the perfumer or flavourist can creatively employ. Safety is a more serious issue with flavours, but fragrances
are impacted, as well, and it will be cumbersome to develop a product that will meet regulations everywhere.

The emphasis on ‘pesticide-free’ products will intensify in coming years, and could pose problems to Indian suppliers of spice oils
and oleoresins, in particular.

Climate change & sustainability impacts
The business of essential oils is also being impacted by climate change and this could accelerate in the decades ahead. While this
has prompted some shifts in crop cultivation, as exemplified by the changes witnessed in Indonesia, the long-term consequences can be
worse and hard to predict.

Responsible companies – including some of the biggest F&F businesses – are now paying great attention to sustainable sourcing,
and engaging actively with rural communities that provide them critical raw materials. While cynics view this as selfish acts designed to
protect their business interests, the impacts are substantial and largely positive.

Given the advantages that India has and its track record so far in essential oils, there are good reasons to be optimistic of this industry’s
growth prospects.
Ravi Raghavan

134 Chemical Weekly February 20, 2024

Contents Index to Advertisers Index to Products Advertised