Product of the Month - July 2023
Our Organic and Conventional Lemongrass Oil is sourced from our trusted suppliers across South Asia. Lemongrass is a yellow liquid with fresh, zesty notes. Citral is the main component in Lemongrass, which can be easily adulterated. Here at Khush Ingredients, we aim for between 69-72% Citral, plus a healthy balance of minor components. Main concerns within the market is the achievement of value and emphasis on the price of Lemongrass, which has forced producers to use synthetic Citral or natural carrier oils to remain competitive.
This provides an adulterated product only a C14 and flame test can determine. Therefore, if you get a price that is too good to be true, then it often is.
Figure 1: Organic vs Conventional Lemongrass
The price for Lemongrass has fluctuated over the years. Back in 2018, the price of Conventional Oil surged after a plant outage at a major synthetic Citral production site. This led to global buyers seeking natural alternatives to cover their needs. These high prices encouraged farmers to make new sowings, but it wasn’t long before synthetic Citral returned. The price of Lemongrass plummeted as production exceeded demand.
Prolonged wet weather in 2021 caused a shortage of quality oil. The low supply resulted in prices soaring to a new peak!
Image: Lemongrass from our suppliers.
So what was the lowest point for Lemongrass? In 2022, global uncertainty caused prices to decline rapidly as producers faced inventory growth with the fall of exports. Many farmers have opted to pause production until their inventory is cleared. We do not believe these low prices will sustain as it is unrealistic to expect producers to continue operating in a market in which the prices are below their cultivation costs.
Prices are rising as volumes decline, so now is the perfect time to secure stock for the next 12 to 18 months.
Image: Harvesting Lemongrass from our suppliers.
Unlike Conventional Lemongrass, Organic prices remained stable until 2022 when prices peaked. Many Indian exporters were required to re-apply for Organic Certification, however failed to do so due to the cost and paperwork necessary. This led to the EU rescinding the licenses of many Organic producers. The supply of Indian Organic Lemongrass dropped, resulting in buyers purchasing alternatives from higher priced regions. After recertification, almost two years later, Indian producers were on verge of resuming exports of Organic oils. However, during their absence a lot had changed in the market. African suppliers caused prices in new regions to drop due to the low demand as well as the abundance of synthetically adulterated Lemongrass oil in the market.
The reality of Organic Lemongrass Oil is that a moderate premium price can be validated as a reflection of the effort required to produce small volumes. However, the increase in price from Conventional to Organic Lemongrass Oil can be justified at about 30% rather than the 80% it has reached.
At Khush, we regularly test our Conventional and Organic Lemongrass from trusted, quality producers and find there are no pesticides and agrochemicals used. Our Lemongrass is registered with both UK and EU REACH programs, ensuring our product complies with all safety and environment regulations required by both frameworks. If you are interest in our Lemongrass Oil, please enquire at firstname.lastname@example.org .
Contact us for further information and documentation.
UK Tel: +44(0)1993 882883 NL Tel: +31(0)85 822 2417
Sample the stunning, natural, Lemongrass oil from Khush Ingredients. Email: email@example.com