Lemongrass Oil Farming Full Guide
Part 1: Introduction to Lemongrass and Essential Oil
- What is Lemongrass?
Lemongrass, scientific name Cymbopogon flexuosus, is an aromatic grass that is found naturally in South Asia, India, Sri Lanka, and Southeast Asia. This grass is famous for its sweet, citrusy aroma, which is mainly used for essential oil.
- Importance of Lemongrass Oil
Lemongrass essential oil is very valuable:
For fragrance in perfumery and cosmetics
For stress relief in aromatherapy
For antiseptic and anti-inflammatory properties in pharmaceuticals
As a natural flavoring agent in the food industry
It is also used as an insect repellent
- Global and Indian Market Demand
The demand for lemongrass oil in the global essential oil market is increasing by 10-15% every year.
India is a major producer as well as exporter.
Europe, USA, Japan, Middle East are major buyers of lemongrass oil.
- Why is Lemongrass Oil Farming profitable? More profit on less land: 40-50 liters of oil is extracted from 1 hectare.
Frequent cutting: Harvesting can be done every 60 days.
High export demand: Price ₹12,000 to ₹18,000 per litre.
Cheap input and low maintenance: Irrigation and fertilizer requirements are moderate.
Use of by-products: Leaves are useful for fodder and compost.
- Overview of Cultivation and Oil Extraction Process
Lemongrass is grown mainly by suckers.
Ideal season occurs at the start of monsoon.
Crop is ready for first cutting in 3-4 months.
Oil is extracted by steam distillation, in which fresh grass is separated into oil and water through steam.
Summary
Lemongrass oil farming is a lucrative cash crop which is best for both small and big farmers. Its high market demand and export potential makes it a smart choice for future farming.
Part 2: Climate and Soil Requirements
- Ideal Climate Conditions
Lemongrass prefers hot, humid and tropical climates.
Temperature range: 25°C to 30°C is ideal.
Growth slows when temperature is less than 10°C or more than 40°C.
Adequate rainfall is necessary, about 1200-1500 mm per year preferred.
It grows in dry climates too but irrigation is required.
- Soil Requirements
Soil type: Loamy soil, sandy loam or red laterite soil is best.
Soil drainage is very important — excess water retention can cause severe dryness.
Soil pH: 5.5 to 8.0 pH is ideal. Neutral to slightly acidic or alkaline will do.
If there is more organic matter, the plant remains healthy.
- Land Preparation
First plough the soil properly 2-3 times.
It is important to level it so that irrigation can be uniform.
Mix organic manure (compost or FYM) and pulses in the soil.
For bed preparation, small raised beds can be made so that there is not too much water.
- Land Selection Tips
Low lying area where water does not stand still, lemongrass grows best.
If there is too much water or salinity in the soil, the growth is less.
There should be an accessible place near the road so that the oil distillation unit can be easily transported.
Summary
Warm climate, loamy soil with good drainage, and proper land preparation are essential for lemongrass farming. If the soil and climate conditions are right, then both oil yield and plant health improve.
Part 3: Propagation and Planting
- Propagation Methods
Lemongrass is mainly propagated by sucker division.
Suckers should be healthy and disease-free.
It can also be grown from seeds, but the sucker method is more reliable and fast.
- Nursery Bed Preparation
Make the nursery bed lightly raised and well-drained.
Make the bed fertile by adding organic manure to the soil.
The length and width of the bed should be approximately 1 meter, so that irrigation and maintenance is easy.
Plant the suckers in the nursery at a distance of 15-20 cm.
- Selecting Healthy Suckers
Choose suckers that are 6-8 weeks old and 20-25 cm long.
The plant that appears healthy and disease-free is the best for planting suckers.
- Planting Time (Seasonality)
The ideal planting season is early monsoon (June-July) or post-monsoon (September).
During this time, the moisture in the soil is good and the plant takes root well.
- Planting Pattern and Spacing
Make rows in the field in which the plants are at a distance of 20-30 cm.
Row to row distance: 30-45 cm so that the plants get proper sunlight and air circulation.
Proper spacing will keep weeds under control and plants healthy.
- Step-by-Step Planting Procedure
- Prepare the land well.
- Plant suckers at a distance of 15-20 cm in the nursery.
- When suckers become strong (6-8 weeks), then transfer them to the field.
- Make planting holes in the field with a gap of 20-30 cm.
- Carefully plant the suckers in the holes and settle them after watering them lightly.
- Mulch so that moisture is retained and weeds are controlled.
Summary
Sucker division is the way to fast and reliable propagation of lemongrass. Proper nursery preparation, selection of healthy suckers, and correct spacing give good farming results.
Part 4: Crop Management and Fertilization
- Irrigation Requirements
Lemongrass needs regular irrigation, especially in dry season.
Water logging once in 7-10 days is good, but can be adjusted according to soil type.
It is important to avoid waterlogging, so there should be a proper drainage system.
- Fertilizer Use
Organic manure like FYM (farmyard manure) or compost should be given about 10-15 tonnes per hectare.
Chemical fertilizer: Use balanced NPK fertilizer, like 60 kg Nitrogen, 40 kg Phosphorus, 40 kg Potassium per hectare.
It is best to do split application – half fertilizer at the time of planting, the rest during crop growth.
- Weed Control
Weeds grow a lot in the initial 30-45 days, so manual weeding is a must.
Mulching (dry grass or straw) helps in weed control and keeps the soil moist.
Use chemical herbicides sparingly, avoid them if you are doing organic farming.
- Pest and Disease Management
Lemongrass does not have much pest problem, but there are some common pests:
Aphids
Rust
Leaf blight
Neem oil spray can be used for organic control.
Chemical pesticides If necessary, use approved pesticides and follow instructions.
Using disease-free planting material is most important.
- Mulching Benefits
Mulching controls soil temperature.
Moisture is retained.
Weed growth is reduced.
Soil erosion is prevented.
- Intercropping Options
Some short-duration crops such as coriander, fenugreek can be grown in between lemongrass, but this should be carefully planned so that the growth of lemongrass is not affected.
Summary
Proper irrigation, balanced fertilization, timely weed control, and pest management improve both lemongrass growth and oil yield. It would be best to prefer organic methods for quality oil.
Part 5: Harvesting and Yield
- When to Harvest
The first cutting of lemongrass takes place after 3-4 months.
After that, harvesting can be done every 60 days (2 months).
Generally, 3-4 harvests are possible in a year.
- How to Harvest
Lemongrass stems should be cut 4-6 inches above ground level.
Cutting should be done with a sharp sickle or knife so that the plant is not damaged.
It is convenient to harvest the entire field at once, so that fresh biomass is immediately ready for distillation.
- Post-Harvest Handling
Harvested lemongrass should be taken for distillation as soon as possible so that the oil quality is maintained.
If you have to keep it for a little time, dry it in shade, but drying for a longer time reduces the oil yield.
- Expected Yield
About 40-50 tons of fresh lemongrass biomass is obtained from 1 hectare per year (with 3-4 harvests).
Fresh biomass yields 0.5% to 1% oil.
Meaning 40-50 liters of lemongrass oil can be extracted from 1 hectare annually.
- Quality Parameters for Harvesting
Grass should be fresh and green.
Leaves should have more moisture so that oil extraction is efficient.
Plant should be mature, but old or dry grass is not suitable for harvesting.
- Factors Affecting Yield
Climate and soil conditions
Fertilizer and irrigation schedule
Pest control and weed management
Harvesting timing and handling
Summary
Timely harvesting and proper handling improves both oil yield and quality. Repeated cutting of lemongrass gives good return in a year.
Part 6: Essential Oil Extraction Process (Distillation)
- Oil Extraction Overview
The most common and effective method of lemongrass essential oil extraction is steam distillation.
In this process, the oil is vaporized from inside the grass using steam and separated.
- Steam Distillation Process
Fresh lemongrass biomass is steamed in the boiler of the distillation unit.
Steam breaks down the cells of the grass and forms a mixture of essential oil and water.
This mixture cools in the condenser and the oil and water are separated.
The oil floats to the top, which is separated and collected.
- Distillation Unit Setup Following parts are present in Distillation unit: Boiler (to generate steam) Distillation tank (where grass comes in contact with steam) Condenser (to convert steam into liquid) Separator (to separate oil and water)
- Types of Distillation Units Small-scale units: Portable and low capacity (50-100 kg biomass per batch) Medium scale units: 500-1000 kg capacity, suitable for cooperatives Large-scale units: Industrial capacity (1000+ kg per batch)
- Distillation Procedure (Step-by-Step)
- Cut fresh lemongrass and put it in the distillation tank.
- Heat water in a boiler and create steam.
- Pass the steam into a distillation tank, which releases oil from inside the lemongrass.
- The mixture of steam and oil goes into a condenser and turns into a liquid.
- Separate the oil and hydrosol in a separator.
- Collect the essential oil and store it in airtight containers.
- Oil Yield and Quality
100 kg of fresh lemongrass yields 0.5 to 1 litre of oil (yield 0.5%–1%).
The quality of the oil depends on biomass freshness, distillation time, and temperature.
Overheating can ruin the quality of the oil.
- Storage and Packaging
Oil should be stored in dark glass bottles so that it is not damaged by light.
It is important to keep it in airtight containers so that the scent and efficacy of the oil is maintained.
Temperature-controlled storage is ideal (15-25°C).
- Cooperative Model Benefits
Farmers can set up a mill distillation unit.
Cost sharing makes it affordable to install machinery.
Quality control and marketing are beneficial.
Summary
Steam distillation is a proven and efficient method for lemongrass oil extraction. High quality essential oil can be extracted with proper setup, process control, and storage.
Part 7: Market Price and Demand Analysis
- Current Market Price of Lemongrass Oil
The price of lemongrass essential oil in India is approximately ₹12,000 to ₹18,000 per litre.
The price varies according to the quality and purity.
Bulk buyers and exporters can get a little discount.
- Demand in India and Abroad
The demand for lemongrass oil is increasing rapidly in cosmetics, pharmaceuticals, and aromatherapy industries.
Europe, USA, Japan, Middle East are the biggest buyers in the export market.
The demand is going to increase further due to the trend of organic and natural products.
- Major Buyers and Industries Perfume and fragrance companies Herbal and Ayurvedic medicine manufacturers Soap and cosmetic brands Food flavoring companies Aromatherapy product manufacturers
- Export Opportunities Export of lemongrass oil from India has been declining every year. Standard certification (ISO, AGMARK) is important for export quality oil. Reaching international buyers is possible with the help of government export promotion councils.
- Price Fluctuation Reasons
Seasonal availability and harvest time factor
Quality differences (pure vs diluted oils)
Global demand-supply gap
Currency exchange rate changes affecting export prices
- Tips to Get Better Price
Focus on quality control (fresh biomass, proper distillation)
Improve packaging and branding
Contact direct buyers (exporters, industries)
Getting organic certification can fetch premium price
Summary
Lemongrass oil market price is good and demand is continuously increasing. Quality and certification can further improve the price. There is a good chance of growth in export market.
Part 8: Profitability and Cost-Benefit Analysis
- Input Costs per Hectare (Approximate) Item Cost (₹) Land preparation 15,000
Planting material (suckers) 25,000
Fertilizers & manure 10,000
Labor (weeding, harvesting, irrigation) 15,000
Distillation costs 20,000
Total Input Cost 85,000 - Expected Output and Revenue Output Quantity per hectare Price per liter (₹) Total Revenue (₹) Lemongrass essential oil 40-50 liters 15,000 6,00,000 – 7,50,000
- Net Profit Calculation Total revenue: ₹6,00,000 to ₹7,50,000 Total input cost: ₹85,000 Net profit: ₹5,15,000 to ₹6,65,000 per hectare annually
- Factors Affecting Profitability Quality of planting material and crop management Efficiency of distillation process Market demand and price fluctuations Proper harvesting time and handling Government subsidies and support
- Tips to Increase Profitability Use cooperative distillation units to reduce costs Adopt organic farming practices for premium price Ensure timely harvesting and quick distillation Build direct market linkages or join farmer producer organizations (FPOs) Diversify into by-products like lemongrass tea or dried leaves for additional income
- Risk Factors and Mitigation Pest and disease outbreaks — use integrated pest management (IPM) Market price volatility — explore contract farming or forward contracts Climate variability — adopt irrigation and mulching for moisture control Summary Lemongrass oil farming offers high profitability with relatively low input cost. Proper management and market strategies can maximize returns and ensure sustainable income for farmers.
Part 9: Government Schemes and Support
- Overview of Government Support for Essential Oil Crops
Central and state governments run different schemes to promote essential oil crops.
These schemes provide financial aid, subsidies, and technical support to farmers.
- Key Schemes for Lemongrass Oil Farming
Mission on Medicinal Plants (MoMP):
Provides subsidy and training for cultivation of medicinal and aromatic plants.
National Horticulture Mission (NHM):
Provides planting material subsidy and drip irrigation support for aromatic crops like lemongrass.
Organic Farming Schemes:
You can get financial assistance for organic certification and inputs.
Subsidy for Distillation Units:
Subsidy on essential oil extraction units is available for small farmers or cooperatives.
- Export Promotion Support APEDA (Agricultural and Processed Food Products Export Development Authority): Helps exporters in registration, quality certification and market development. Spices Board India: Aromatic and spice crops provide assistance to boost exports.
- How to Apply for Schemes Contact your district agriculture office or horticulture department. Required documents should be prepared: land papers, farming plan, identity proof, etc. You can also apply through online portals (state agriculture department websites). It is also easy to apply through Farmer Producer Organizations (FPOs) or cooperatives.
- Success Stories of Government Support
Lemongrass farmers in Kerala, Tamil Nadu, and Karnataka have set up distillation units with government subsidies.
Farmers in these states have made good profits and also received export orders.
Summary
Government schemes and support make lemongrass oil farming profitable and sustainable. Farmers should benefit from these schemes so that input costs are reduced and market access increases.
Part 10: Challenges and Solutions in Lemongrass Oil Farming
- Common Challenges
a) High Initial Investment
Distillation unit setup cost is a bit high.
It is difficult for small farmers to get machinery.
b) Quality Control Issues
If the biomass is not fresh or the distillation process is not done properly, the quality of the oil can deteriorate.
Adulteration can cause the price to fall.
c) Pest and Disease Problems
Aphids, rust, and leaf blight sometimes affect the crop.
Lack of knowledge prevents farmers from treating the crop.
d) Market Access
Farmers find it difficult to reach direct buyers.
They get less price from middlemen.
e) Price Fluctuation
The price fluctuates according to global demand-supply.
Export policies and currency rates have an impact.
- Practical Solutions
a) Cooperative Farming and Shared Distillation Units
Farmers set up distillation units together and share costs.
Quality control improves and market power increases.
b) Training and Awareness
Get training from agricultural extension services on pest control and best farming practices.
Take advantage of online resources and government workshops.
c) Use of Organic Methods
Control pests with neem oil and organic pesticides.
Organic certification fetches premium price in the market.
d) Direct Marketing and Farmer Producer Organizations (FPOs)
Contact buyers through FPOs, sell directly.
Join online marketplaces and export promotion councils.
e) Crop Diversification
Diversify income by doing intercropping with lemongrass or making by-products.
- Success Stories
Kerala farmers doubled their profit by setting up cooperative distillation units.
In Tamil Nadu, organic lemongrass oil farming is getting global buyers.
Summary
Lemongrass oil farming has challenges, but they can be solved with the right planning, cooperative model, and market strategies. This crop is sustainable and profitable in the long term.
Part 11: Additional Uses of Lemongrass and By-products
- Uses of Lemongrass Leaves and Residue
Fodder: The residue left after harvest is used for animal feed.
Mulching: Dry leaves are used as mulch to retain soil moisture and for weed control.
Composting: Lemongrass waste is also helpful in composting, a valuable input for organic farming.
- Medicinal Properties and Home Remedies
Lemongrass tea boosts immunity and improves digestion.
Popular for its antioxidant, anti-inflammatory and antimicrobial properties.
It is also used for cold, cough, and stress relief.
- Aromatherapy and Cosmetic Applications
Essential oil is used in skin care products, such as lotions, soaps, and perfumes.
Used in diffusers for relaxation and stress reduction.
Can also be made into a natural insect repellent.
- Value Addition Ideas for Farmers
Lemongrass Tea Packaging: Dry leaves can be packaged and sold.
Herbal Products: Lemongrass-based soaps, candles, and essential oil blends can be made and sold in the local market.
Essential Oil Blends: Premium products can be made by mixing with other essential oils.
Organic Certification: Organic lemongrass products fetch a higher price.
Summary
Lemongrass leaves and by-products have multiple uses which can increase farmers’ income. There is also strong demand for medicinal and cosmetic applications, which provide new opportunities for value addition.
Lemongrass Oil Farming
Part 12: Conclusion and Next Steps for Farmers
- Summary of Benefits
Lemongrass oil farming is a high-value cash crop that is beneficial for both small and large farmers.
Its global demand is increasing, which provides good earning opportunities.
Sustainable income is possible with low input cost and multiple harvests.
By-products and value addition can also create other revenue sources.
- Action Plan to Start Cultivation
Check the soil and climate conditions of your region.
Grow healthy suckers or nurseries.
Set up proper land preparation and irrigation system.
Apply for government schemes and subsidies.
Consider cooperative model for distillation unit setup.
Create market linkages, contact buyers.
- Resources and Contacts
Contact local agriculture extension office and horticulture departments.
Check latest schemes and trainings on online platforms and government portals.
Join Farmer Producer Organizations (FPOs) and take advantage.
- Encouragement for Small and Marginal Farmers
Despite having less land, lemongrass oil farming can give good profit.
Sustainable and profitable farming is possible with proper guidance and planning.
Keep yourself updated and keep learning new farming techniques.
- Further Reading and Related Crops
Also research on aromatic crops like Ajwain oil farming, Palmarosa oil farming, Tulsi oil farming.
Explore organic farming practices and essential oil crop diversification.
Final Words
Lemongrass oil farming is a promising and rewarding business in which you can earn good money with hard work and proper planning. Start today and take your farming to new heights!
✍️Real Neel
Founder -Farming Writers
Read A Holy Basil,Tulsi oil farming business full guide 👇
https://worldcrop.wordpress.com/2025/07/31/holy-basil-tulsi-oil-farming-business-usa-guide/