March 2026
Aromatic plants such as palmarosa, citronella, and lemongrass are cultivated for their essential oils, which are widely used in perfumery, cosmetics, pharmaceuticals, and herbal products. Unlike perishable agricultural commodities, essential oils have a longer shelf life and relatively stable demand. Even small quantities can generate significant returns, making aromatic crops particularly attractive for farmers with limited land resources. In addition, these crops require comparatively lower inputs and can perform well in marginal soils where conventional crops often struggle.
Among them, palmarosa (Cymbopogon martinii), locally known as Rosha grass, has shown strong potential. The crop is valued for its oil, which is rich in geraniol – a compound with a pleasant rose-like fragrance widely used in soaps, perfumes, and medicinal formulations. Palmarosa adapts well to dry and semi-arid conditions and, once established, continues yielding for four to five years. For farmers facing climatic uncertainty, such characteristics offer both economic and ecological advantages.
Aromatic farming: The beginning
The SSM Krishi Vigyan Kendra (SSMKVK), Sagroli farm primarily cultivated soybean, chickpea, sorghum, and cotton. The journey of promoting aromatic farming in the Marathwada region began recently. During the COVID-19 period in 2020-21, the KVK organised an online workshop on the scope of aromatic farming in Marathwada. The discussions highlighted growing market demand for essential oils and the importance of value addition through local processing. Farmers responded with curiosity, but many were unsure whether such crops could thrive under local conditions.
Rather than limiting efforts to awareness generation, in 2023, the KVK decided to demonstrate the cultivation of palmarosa on its farm. To encourage value addition and entrepreneurship, a processing unit was also established at the KVK farm to provide farmers with practical exposure. A one-tonne capacity steam distillation unit was installed at the Atkali sub-centre. Through steam distillation, harvested biomass is processed locally, allowing essential oils to be extracted efficiently. This approach reduces transportation costs, minimises post-harvest losses, and ensures that farmers retain greater value at the farm level. Distillation residues are recycled as organic manure, contributing to soil health and reducing waste.
Between 2023 and 2025, palmarosa, cultivated on 1.2 hectares as a demonstration, showed encouraging results. Oil yields ranged from 75 to 100 kilograms per hectare, with oil recovery between one and 1.7 percent. The oil fetched around ₹3,500 per kilogram in markets such as Mumbai and Hyderabad. Compared to conventional crops grown under similar agro-climatic conditions, profitability was observed to be two to three times higher. Once the crop was established, maintenance costs remained relatively low, allowing for a steady income over multiple years.
Economically, palmarosa demonstrated clear advantages. Establishment costs ranged between ₹60,000 and ₹70,000 per hectare in the first year, with annual maintenance costs around ₹25,000-₹30,000. Including distillation, total cultivation costs were estimated at ₹1.4-₹1.5 lakh per hectare. With oil yields of 75-100 kilograms and market prices of ₹3,400-₹3,500 per kilogram, gross incomes ranged from ₹2.62 to ₹3.5 lakh per year, while net returns were between ₹1.22 and ₹2 lakh. Since the crop remains productive for four to five years, farmers began to view it as a stable enterprise rather than a seasonal experiment.
Preparing farmers as entrepreneurs
SSMKVK Sagroli has played a pioneering role in introducing and expanding aromatic crop cultivation in Nanded and the adjoining districts of the Marathwada region. Recognising the potential of aromatic crops for income diversification, the KVK initiated a focused programme to promote crops such as Palmarosa, Lemongrass, Citronella, and Geranium among progressive farmers and rural youth.
Through continuous technological backstopping, the KVK conducted need-based training programmes, on-field demonstrations, and farmer exposure visits to established distillation and processing units. These efforts enabled farmers to understand the complete value chain—from cultivation practices, harvesting techniques, and post-harvest management to essential oil extraction, grading, and marketing.
The initiative has created a new group of rural agro-entrepreneurs in the region. Motivated by the technical support and mentoring of SSMKVK, ten farmers have successfully established their own steam distillation and processing units using locally available resources. They have adopted improved varieties, scientific cultivation practices, and efficient distillation methods, resulting in higher oil yield and improved quality.
Today, these farmer-entrepreneurs are cultivating Palmarosa, Lemongrass, Citronella, and Geranium on a commercial scale, supplying essential oils to various buyers, herbal industries and perfumery units. This intervention has opened new avenues of livelihood, reduced dependency on rainfed crops, and created year-round income opportunities for farmers in drought-prone regions.
| Box 1: Case of Mr Dhanaji Patil One farmer who illustrates this transition is Mr Dhanaji Patil from Kokalgaon village in Degloor taluka of Nanded district. Owning five hectares of irrigated land, he traditionally cultivated soybean, chickpea, and pigeonpea, earning about ₹25,000 to ₹30,000 per hectare. Despite irrigation facilities, unstable market prices made farming uncertain. Seeking alternatives, he participated in the aromatic crop training organised by SSMKVK. Encouraged by the training and ongoing technical support, Mr Patil adopted palmarosa cultivation on three acres using the PRC-1 variety. He took a significant step by establishing a one-tonne capacity steam distillation unit at his farm. The total investment was ₹19.51 lakh, of which ₹11.70 lakh (60 per cent) was supported through the Nanaji Deshmukh Krishi Sanjivani Prakalp (PoCRA) scheme of the Government of Maharashtra. On-farm processing transformed the economics of his enterprise. Instead of depending on external distillation facilities, he could process biomass immediately, ensuring better oil quality and higher returns. Essential oil produced on his farm was sold in markets such as Mumbai, Bidar, and Hyderabad, including to buyers like HS Kelkar & Company, BBK Specialties, Udyan Hermomatrix Pvt. Ltd., and Sushil Aromatics. Over two years, he produced around 90 kilograms of oil in the first year and 110 kilograms in the second year. Oil prices ranged between ₹2,500 and ₹3,900 per kilogram, generating nearly ₹5 lakh in gross income. Encouraged by consistent returns, he expanded cultivation by an additional two acres, gradually transforming experimentation into a reliable enterprise. The journey also presented practical challenges. Harvesting during rainy periods negatively affected biomass quality and sometimes delayed operations. Oil recovery was observed to be 20 to 30 per cent lower in heavy black cotton soils compared to lighter, well-drained soils, necessitating adjustments in field selection and management. Labour availability emerged as another constraint, given that harvesting was labour-intensive. Introducing mechanised tools such as brush cutters and reapers helped reduce labour dependency and lowered harvesting costs by nearly 60 to 70 per cent. Seasonal variations also influenced oil recovery, with higher yields observed during summer compared to winter and rainy seasons. Continuous advisory support from SSMKVK helped farmers refine practices related to soil testing, nutrient management, irrigation scheduling, harvesting stage, and distillation methods. The process reinforced an important lesson: agro-enterprises evolve through experimentation and adaptation rather than through one-time technology adoption. “Visible success at the local level encouraged neighbouring farmers to experiment, demonstrating how farmer-to-farmer learning drives horizontal spread.” As Mr Patil’s enterprise stabilised, neighbouring farmers began visiting his fields to observe the crop and distillation process. Inspired by the results, five additional farmers adopted aromatic crops, bringing nearly ten acres under palmarosa cultivation in nearby villages. This spread occurred largely through observation and peer learning, highlighting the importance of local demonstration in scaling innovation. For farmers like Mr Dhanaji Patil, aromatic farming represents more than a new crop. It reflects a transition towards experimentation, learning, and entrepreneurship. In an agricultural landscape shaped by uncertainty, such transitions may hold the key to creating more sustainable and dignified rural livelihoods. |
Conclusion
The experience from SSMKVK Sagroli demonstrates how diversification, value addition and collective approaches can strengthen livelihoods in drought-prone regions. Palmarosa may not replace conventional crops entirely, but it provides farmers with an additional income stream that reduces vulnerability and builds resilience. More importantly, it highlights a shift in perspective from viewing farming solely as production to seeing it as an enterprise. Additionally, SSMKVK played a central role by providing quality planting material of palmarosa, lemongrass, citronella, and geranium, technical guidance on cultivation and distillation, and support in identifying market linkages. Continuous institutional handholding enabled farmers to move beyond crop production towards enterprise development.
Looking ahead, aromatic crops offer opportunities that extend beyond essential oil extraction. Farmers can diversify into value-added products such as herbal soaps, natural floor cleaners, shampoos, bio-insecticides and incense sticks. Distillation residues can be used for vermicomposting and the preparation of organic inputs, improving resource-use efficiency. With increasing consumer preference for natural and eco-friendly products, aromatic crops are likely to remain relevant in emerging markets.
Dr Kapil Shivajirao Ingle Scientist-Agronomy Sanskriti Samvardhan Mandal's, Krishi Vigyan Kendra, Sagroli, Tq. Biloli Dist. Nanded 431731 Email: agro@kvksagroli.co.in
