Export-Import Performance of Patchouli Oil in India: Growth and Instability Analysis

A Patchouli is a perennial, erect, branched aromatic herb with fragrant leaves grown in tropical and subtropical regions with warm and humid climate condition. It is cultivated mainly for its essential oil which extracted by steam distillation from the tender parts of the dried leaves and stems using a small amount of oil. Patchouli oil is deep orange to amber in colour and has an exotic, heavy, earthy aroma. The aroma of patchouli oil is usually described as a blend of earthy, woody, sweet, and musky notes. The objectives of study is an attempt to examine the annual and compound growth rates in the export and import of patchouli oil. The time series data of patchouli oil (export-import) collected through Department of Commerce, Ministry of Commerce and Industry, Government of India for a period of 2001-22 and was analyzed by using growth model i.e., annual, compound growth rate instability and variation. The results revealed that compound growth rates (CGRs) of export and import both are statistically significant at 1% probability level. The CGRs of quantity export and value export has 14.26% and 15.47% respectively and in case of import CGRs of quantity import is 22.15% per annum and CGRs of imported value is high i.e.,38.28% per annum. It is found that the import of patchouli oil is much higher than the quantity exported. The significant import of Patchouli oil was observed from countries Indonesia, Singapore, Spain and Switzerland. Since, increase the demand of patchouli oil on both domestic and international markets, there is a significant opportunity to enhance production by expanding the patchouli crop area. It is also necessary to increase cultivation to reduce its import from other countries.