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| Pharma firms to take up mentha farming |
| Vijay C Roy / New Delhi/ Chandigarh Mar 27, 2009, 00:23 IST |
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Anticipating huge demand for mentha crystal and flakes in both overseas and domestic markets, pharmaceutical companies in the northern region plan to take up mentha cultivation under contract farming.
These companies have already upgraded their processing facilities in order to meet the demand for mentha derivatives.
Mentha derivatives like mentha flakes and crystal are widely used as a flavouring ingredient in various products such as confectionery, pan masala, cosmetics, pharmaceuticals and chewing gums.
Chandigarh-based Surya Pharmaceuticals Ltd, which is procuring mentha oil from Uttar Pradesh, plans to bring 5,000 acres under contract farming in Punjab in the next season. Surya is one of the largest exporters of mint/menthol derivatives like flakes and crystal and exports to countries like China, Europe and the US.
The company, last year, commissioned its unit at Baddi in Himachal Pradesh with a processing capacity of 10,000 tonne per month. It expects a turnover of Rs 180-200 crore in the very first year of operation on the back of growing demand for crystal and flakes.
“ We had set up the unit last year and are utilising 30-35 per cent of the installed capacity. With the growing demand in the overseas market we are hopeful to clock a turnover of Rs 180-200 crore in the current fiscal,” said Hari Om Bhatia, president (corporate finance), Surya Pharmaceutical.
Mentha is produced mainly in Uttar Pradesh and Punjab. While UP accounts for about 90 per cent of total area under mentha cultivation, the important mint production cultivation in Punjab districts are Jalandhar, Ludhiana and Hoshiarpur.
Another Chandigarh-based firm Ind Swift Laboratories too is planning to take up mentha cultivation from the next season to avoid price fluctuation.
“Currently, we are purchasing crude mentha from Uttar Pradesh and after processing in the form of crystal and flakes export overseas as well as cater to the domestic market,” said managing director, VK Mehta said,
The company has an installed capacity of 750 tonne per month.
Similarly, Nectar Lifesciences Ltd is contemplating entering the venture. Said Sandeep Goyal, finance head of the company, “At present, we are not doing mentha cultivation under contract farming but in the near future we can think of this. India is the largest producer of mentha, so there is huge potential.” Nectar has facilities in Jammu and Derabassi with an installed capacity of 12,000 tonne per annum.
The company registered a turnover of Rs 325 crore last year. “This year we have to close operation for 30-40 days as the plants were being upgraded. Hence, we expect our sales to slightly decline,” Goyal said.
Mint growers consider mentha as a bonus crop as it does not disturb or replace the cultivation of any major winter (rabi) or rainy season (kharif) crop.
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