Date post: | 01-Nov-2014 |
Category: |
Documents |
Upload: | chidambaram-ramaswamy |
View: | 14 times |
Download: | 1 times |
NATIONAL MULTI‐COMMODITY
EXCHANGE OF INDIA LIMITED
Report on Menthol Crystal
4th Floor H. K. House,
B/h Jivabhai Chambers, Ashram Road,
Ahmedabad, Gujarat 380 009 INDIA
Phone: 91‐79‐4008 6039 Fax: 91‐79‐4008‐6040
Email: [email protected] URL: www.nmce.com
Menthol Crystal
2
Table of Contents
Introduction..................................................................................................................................... 3
Menthol Producing Countries ......................................................................................................... 3
Domestic Menthol Production ........................................................................................................ 4
Uses and Application ...................................................................................................................... 7
Cultivation and Processing ............................................................................................................. 7
Distillation & Processing ................................................................................................................ 9
Necessity of Futures trading in Menthol in India ......................................................................... 10
Menthol Crystal
3
Introduction
Menthol is crystalline substance with characteristics of pungent odour derived
from the oil of the pepper mint plant ‘Mentha Piperita’.
The plant belong to Labiatae family which is very large family having annual and
perennial herbs. Several species are shrubby or of climbing forms rarely small trees
also. Members of the family are found through out the world but the main area of
plantation is Mediterranean region. The plants have square stems paired opposite
leaves and tubular flowers with two lips. The leaves sometimes grow in wholes;
the flowers may be white or shades of red, blue or purple. The family is well
known for the aromatic volatility having oils in the foliage, which are used in
perfumes, pharmaceutical products, confectionaries.
The true mints belong to the genus Mentha Piperita. The leaves and tops are
sometimes deried and utilized for flavouring but its oil extracted is the main
derivative having large commercial value.
The cultivation of Mentha Arvensis in India is a dramatic & very successful story.
Before, 1964, there was no production of Mentha Oil & Menthol in India. The
cultivation of Mentha Arvensis was started around 1870 in Japan so it is also called
Japani Mint than extant in Brazil, China and Formosa etc. Col. Mr. R.N. Chopra &
Dr. I.N. Chopra of Regional Reserch Laboratory Jammu Tawi first brought Mentha
Arvensis in 1964 and with the best efforts of Mr. S.C. Bante, Managing Director,
Hindustan Richardson Ltd (VICKs), the commercial cultivation could be started in
India.
Menthol Producing Countries
Japan is supposed to be the pioneer in its commercial production before 1st World
War and the species grown was ’Mentha Arvensis’. After 2nd World War Japanese
shifted their commercial cultivativation and manufacturing to Brazil and South
America. In Brazil Mint was grown at a very large scale and repeated harvest of the
Menthol Crystal
4
same crop was undertaken. This practice of repeated harvest of the crop gave an
opportunity to Brazil become one of the major source of Menthol in world market.
Simultaneously China also recognized the commercial significance of Menthol
market and started its production under the State’s controlled arrangement’.
Resultantly by the year 1960 China also became a new and major source of menthol
for the world.
In present scenario, India is the largest producer of Mentha oil followed by the
China. However China is No.1 in Menthol Crystal production followed by India.
Domestic Menthol Production
In India first distillation plant was installed at Bilaspur by a US based MNC in the
year of 1973. Thereafter various local distilleries also came up at Sambhal,
Chandausi and Moradabad. The survey conducted by Richardson Hindustan Ltd.
determined that Tarai Area of Uttar‐Pradesh would be a suitable place for the
cultivation of Mentha Arvensis. The crop of menthe was successfully grown and
when the mentha oil was extracted by Steam distillation, mentha crop became a
viable. Hindustan Richardson Ltd. established a distillation unit in BILASPUR of
district Nanital, so confidently the Farmer could grow Mentha Herb. They had
supplied the planting materials as well as given technical knowledge to grow the
Mentha herb. As the result the area of mentha crops substantially increased in
entire tarai and western districts of U. P. mainly Nanital, Rampur, Moradabad,
Badaun, Bareilly and recently extended to eastern districts viz. Barabanki,
Lucknow & sitapur districts.
India upto 1966 was the importer of menthol which continued up to 1986 but due
to Green Revolution, which started in the year 1965. Plantation of the wonder crop
was undertaken by the farmers of UP at Rampur which later on spread to various
areas like Rudrapur, Bilaspur, Bareilly, Barabanki etc. Some other areas like
Sitapur, Faizabad, Gonda and Baraich; these areas are counted within Barabanki.
In India mint plant is mainly grown in Central Eastern part of UP and some
pockets of Punjab and Rajasthan.
Sr. Area / State % of Total
Menthol Crystal
5
No crop in India
1 BARABANKI (include the area as Sitapur,
Faizabad, Gonda & Baraich )
60%
2 SAMBAL,CHANDOSI, MORADABAD,
BAREILLY, RAMPUR AND BILASPUR
30%
3 PUNJAB, HARYANA, RAJASTHAN 10%
Indiaʹs ʺmint beltʺ lies in the countryʹs ʺbreadbasket,ʺ a strip of plains and foothills
about 1,500 km long and 250 km wide, just south of the Himalayan range,
spanning these states of Punjab, Himachal Pradesh, Haryana, Uttar Pradesh and
Bihar.
Mint cultivation was introduced to India as a main rabi season crop in the 1980s, to
follow the planting and harvesting rice or pigeon pea kharif crops. At that time
mint cultivation did not take off immediately in India because it generated low
yields. The situation improved in the 1990s when new, improved varieties that had
been developed by Indiaʹs Institute of Medicinal and Aromatic Plants (CIMAP)
were introduced and other varieties were imported from China. After this
development, larger areas were planted with mint and CIMAP released another
two new varieties Himalaya and Kosi; this leads India to achieve dominant
position in world menthol production.
90% crop of India, grown in Uttar Pradesh, rest 10% in Punjab, Haryana and
Rajasthan. In recent years Mentha Herb was developed in Madhya Pradesh &
Gujarat but in little quantity.
Table below shows the year wise cultivation & production of Mentha Oil
Year Area Hector Production of Mentha
Oil (in MT)
1965 65‐70 2
1970 600‐650 46
1975 4000‐4500 260
1980 8000 500
1981 10000 800
1985 18000 1400
Menthol Crystal
6
1988 25000 2200
1990 35000 5000
1992 38000 5400
1995 45000 7000
1996 35000 5500
1997 55000 11000
1999 62000 12000
2001 65000 13000
2003 72000 15000
2004 70000 14000
Source: www.ficciagroindia.com
It is clear from last ten years data that menthol production in India has attained
self‐sufficiency in its domestic production. In average India produce 9‐10 thousand
tones. From the year 1997 the demand supply gap has improved and India
converted to net exporters of Menthol to the world market.
With the best efforts of Farmers Small Scale Industries and CSSIR laboratories
RRL Jammu, CIMAP Lucknow, India is one of the largest producer of Menthol
& Mint allied products in world, second is China. Presently 85% production of
Mint products is in India, rest in China, Brazil & other small countries.
In India there are four kinds of Mint crop: ‐
(i) Mentha Arvensis
Initially the crop grown was called Japani mint/ Mentha Arvensis but subsequently
the problems of rains & dryness, this crop was developed and known as Mentha
Shivalik, MSI.
(ii) Mentha Piperita
The USA being the main producer of Mentha Piperita similarly it is also called
American piperita. Though India is developing the quality of Mentha Piperita
comparing to US crop but we have not yet been able grow successfully till now.
(iii) Mentha Spearmint
Menthol Crystal
7
(iv) Citrata (Bargamot)
Over all the production of Mentha Spearmint & Citrata in the world is too less.
Uses and Application
Menthol mint essential oil is the main source of natural menthol. The
dementholised oil (DMO) is reconstituted to produce oil similar to Mentha piperita
oil. Several of the many dozens of terpenes present in the essential oil are valuable
compounds that find uses in the cosmetic and pharmaceutical industries. Menthol
itself is used as a flavouring agent mouth‐related produces such as fresheners,
tooth pastes and chewing gums, etc. Menthol mint oil because of its antimicrobial
properties enhances the shelf of edible products and grains. Menthol mint oil is an
essential ingredient of the ointments, pain balms, lozenges and syrups. It is also
used in cosmetic preparations, colognes, deodorants, cosmetics, etc. In India,
menthol and mint oil are extensively used in betel (pan) related industries.
Uses of Menthol Crystal are as follows:
Pharmaceuticals
Chewing Tobacco
Pan Masala
Perfumery Compounds
Toothpaste
Mouth Washes
Oral Preparations
Confectionery
Cigarettes
Cultivation and Processing
The major events of Mint Cultivation and Manufacturing of Menthol in India
1964: First roots planted in Bilaspur, district Rampur of Uttar Pradesh, India
1966: Green revolution, More and more farmers started to adopt the new
wonder crop. American MNC built‐up large mint crop distillation facility
at Bilaspur.
Menthol Crystal
8
1969: Cultivation Started in Sambhal and Moradabad of Uttar Pradesh.
1970: Mentha & Allied Products Ltd. starts mint crop distillation facility in
Sambhal.
1971: Small distillation plants start operations in Chandausi.
1973: More and more small distillation plants start operations in Rampur,
Sambhal & Bareilly.
1987: India becomes a major exporter of Menthol of Worl Menthol Market.
1990: Lucknow and Barabanki areas started cultivation.
1991: Sitapur and Bahrich areas started culitvation.
1992: Gorakhpur and Azampur areas started cultivation.
1993: Fatehpur started cultivation.
Land Well drained sandy loom soil was found very suitable for growing Mentha
Arvensis. Subtropical and tropical land is available in Tarai area. The crop doesn’t
thrive well under solid soils, waterlogged, scanty rainfall, drought prone areas and
having very poor irrigational facility.
Crop Combination for Higher Profitability
Maize Potato Mentha
Paddy Potato Mentha
Basil Potato Mentha
Paddy Lahi Mentha
Paddy Wheat Mentha
Timing the Plantation
Time of Plantation
(Crop)
Time of Plantation No. of
Harvest
Oil Yield Per
Acre
Mentha Arvensis January 2nd week to Feb.
Last
2 60kgs to 90kgs
Mentha Piperita Dec. Last week to Jan.
Last
2 40kgs to 60kgs
Menthol Crystal
9
Mentha Spearmint Dec. Last week to Jan.
Last
2 40kgs to 65kgs
Distillation & Processing
The Oil derived from the Mentha Arvensis herb (MENTHA OIL) by steam
distillation, which is the basic raw material required for the Menthol Manufacture.
By freezing (chilling) of Mentha oil L‐Menthol (Crystals & Flakes) are isolated. In
India there is two type of Menthol ‐ CRYSTALS & FLAKES, some manufacturers
are processing to their shape and size BOLD (Large crystals, Medium crystals,
Small crystals, Flakes in shape of powder. Rest mother liquor by centrifuging calls
De‐mentholised Peppermint oil. Menthol is main constitutent in Mentha oil Rest
contains Menthone, Menthyl Acetate, Neo‐menthol, Mint terpenes, Alfa‐pinene,
Beta ‐ Pinene.
L‐limonene, 3 Octanol, Pipritone are also main contents to use as raw material to
produce Value added products for Flavour and fragrances Industry.
Menthol mint essential oil is the main source of natural menthol.
The dementholised oil (DMO) is reconstituted to produce oil similar to Mentha
piperita oil. Several of the many dozens of terpenes present in the essential oil are
valuable compounds that find uses in the cosmetic and pharmaceutical industries.
Menthol itself is used as a flavouring agent mouth‐related produces such as
fresheners, tooth pastes and chewing gums, etc. Menthol mint oil because of its
antimicrobial properties enhances the shelf of edible products and grains. Menthol
mint oil is an essential ingredient of the ointments, pain balms, lozenges and
syrups. It is also used in cosmetic preparations, colognes, deodorants, cosmetics,
etc. In India, menthol and mint oil are extensively used in betel (pan) related
industries.
Menthol is generally obtained by chilling mint oil and subsequent centrifuging to
separate out the menthol crystals. The process may be divided into two steps,
firstly menthol flakes are produced by chilling mint oil and secondly menthol
flakes mixed with mint oil again chilled to produce bold crystals of menthol. The
total recovery of menthol in the first step is around 70% . The time cycle for first
step is around 6‐7 days. In the second step, menthol flakes mixed with certain
proportion of mint oil kept under temperature control for about 25 days.The
Menthol Crystal
10
mother liquor (conc. Mint oil ) is a bye product and can be used again till
decolourisation of oil occurs. Total recovery of bold menthol crystals is about 50 % .
Process of Deriving Menthol Crystals
Necessity of Futures trading in Menthol in India
Price trend
Stage 1: Farmers level
Mentha arvensis leaves are boiled and oil
is extracted. Iron vessel is used for the
same.
Stage 2: Industry level
Mentha oil extracted in stage 1 is frozen
to minus 60 degrees Celsius. This takes
about 6 to 7 days. Aluminium vessel is
used here. The output consists of 30%
De‐Mentholised Oil (DMO) and 70%
Flakes.
Stage 3: Industry Level
These flakes are heated at 40 degrees
Celsius. The liquid obtained is filtered by
cloth and loaded into a machine. Crystals
are sown in this liquid and kept for 15 to
20 days. The output is 70% crystal and 30%
residual mentha flakes. Iron vessel is used
in this process.
Menthol Crystal
11
Currently prices of menthol are ruling around Rs 640/ Kg for Crystal Bold, Rs
630/Kg for Crystal Medium and Rs 580/Kg for Flakes. Increase in international
demand, which is augmented by poor crop report of China and Brazil, is
responsible for this increased price.
During the current year its price level remains as follows:‐
Month CR (Crystal Bold) CM (Crystal
Medium)
Flakes
April‐04 360 355 335
May‐04 370 365 345
June‐04 380 375 355
July‐04 425 415 385
Aug‐04 456 450 415
The market of Menthol and its derivatives is very fragmented and has no
regulatory body as such to overview the prices at which actual trade take place.
However, general sentiments are expressed and disseminated among the trade
participants. As explained in earlier section of the report that India is being in
surplus in production’ is exposed to international market for exports, get
influenced by the sentiments of other exporting and importing countries. In order
to provide a strong and dependable market mechanism which NMCE can provide
through its national platform of online trading on the exchange.
Price discovery and price risk management
Since the product is dependent mainly on export market the stake of exporters
remains always very high, especially when the prices get highly volatile due to
various reasons. Exporters can hedge their positions in view of their futures export
commitments and can protect from unwarranted market volatility.