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.

2. Menthol Producing Countries

Japan is supposed to be the pioneer in its commercial production before 1^st World War and the species grown was ’Mentha Arvensis’. After 2^nd 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 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.

3. 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. No	Area / State	% of Total 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%

India's "mint belt" lies in the country's "breadbasket," 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 India's 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.

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
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

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.

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,

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.

4. Uses and Application

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.

5.1 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.
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.

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 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 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 % .

7. Necessity of Futures trading in Menthol in India

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.

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.

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.

1. Introduction

2. Menthol Producing Countries

3. Domestic Menthol Production

4. Uses and Application

7. Necessity of Futures trading in Menthol in India