Economic Viability of Extracting Lemongrass Essential Oil Under Steam Distillation in Pakistan

Abstract

emand for volatile essential oils is rising in health and wellness sectors of Pakistan but local production is almost negligible due to lack of knowledge about extraction techniques. Present research was aimed at providing practically oriented financial and technical knowledge about essential oil extraction using most common traditional steam distillation technique for lemongrass. A small commercial distillation unit having 500 litre water holding capacity was utilized to estimate the economics of lemongrass essential oil based on prevalent market level input/output prices during year 2025-26. Steam distillation unit was LPG fed and lemongrass fresh leaves were purchased from farmer for Rs.20/Kg. Distillation results on technical side revealed that 231 ml of pure essential oil was extracted out of 100 Kg loaded lemongrass from one round of extraction process, consuming 6 Kg LPG over 4-hours’ time span. Monthly cost benefit analysis revealed that processors might earn average gross profit of Rs.82750 with operational expenses of Rs.263750/. Accordingly, processors will have to conduct daily two distillation rounds to produce total 11.5 litre oil to capture wholesale rate of Rs.30000/litre. It was quite obvious from monthly profitability analysis that processing of lemongrass for volatile oil is a highly profitable venture requiring initial small investment up to one million enjoying around 1-year payback period. Therefore, government and private sectors should come forward to promote essential oil industry in the best interests at least of local farmers, entrepreneurs and local consumers including practitioners of alternative/traditional/Unani system of medicine.