Uttarakhand Aroma Policy, 2018:

Introduction :

 1.1 The country’s INR 15000 crore fragrances and flavours market (aromatic sector) is witnessing buoyant times with consumption demand going up in the Fast Moving Consumer Goods (FMCG) sector, rapid penetration in the rural market, and growing acceptance of Indian items in the global market. Highlights of the sector are as given below:

• India ranks 2nd in essential oil production value (21-22% share) ·
• The essential oil market is expected to reach USD 11,188 million by 2022, with a Compounded Annual Growth Rate (CAGR) of 8.7% from 2016 to 2022 ·
• Turnover of Indian Herbal industry is around INR 20000 crores (in 2015) ·
• India ranks 3rd in essential oil production (16 - 17% share).

 1.2 The State of Uttarakhand was formed on 9th November 2000 as the 27th State of India, when it was carved out of northern Uttar Pradesh. Located at the foothills of the Himalayan mountain ranges, it is largely a hilly State, having international boundaries with China (Tibet) in the north and Nepal in the east. The State is close to the National Capital and has excellent connectivity with its neighboring States.

1.3 Uttarakhand being a Himalayan state enjoys a distinct advantage over the availability of some valuable Aromatic Plants in the State. Key factor which supplements cultivation of aromatic plants in the State is as given below:

•  Uttarakhand is blessed with a variety of soils and agro-climatic conditions, ranging from Sub-Tropical to Alpine, which is a mega biodiversity hotspot for wide range of wild and cultivated aromatic species

1.4 Highlights of Aromatic sector in Uttarakhand are mentioned below:

• Approximately 179 unique & high value aromatic plants found in the State.
•  Indian Cassia (Cinnamomumtamala) first Geographical Indication(GI) registration of State (No. 520 ) due to its rich Cinnamaldehyde content.
• CAGR of 27% (2002 – 17) in turnover of Aromatic sector in Uttarakhand.
• Uttarakhand promotes aromatic crops in organized manner through cluster approach.
• Establishment of 109 aroma clusters.
• Networking of 178 field distillation unit.
• Unique quality of essential oil is produced in the State. Approx 600 tonne of pure and natural essential oils suitable for aroma therapy and spa industry is being produced by around 18000 trained farmers. Ø Major aromatic crops include Lemongrass, Damask Rose, Japanese Mint, Chamomile, Cinnamon etc.

 2. Need for establishing aroma park :

 2.1 Uttarakhand farmers face typical challenges like damage to crops by wild animals, less of irrigation facilities i.e rain-fed agriculture, transportation constraints, scattered and small land holdings, etc. These challenges force the farmers to shift from agriculture to other livelihood options (in urban areas).

2.2 In the last decade, aromatic sector has emerged as viable solution for above mentioned challenges being faced by farmers because aromatic plants are stress tolerant, safe from wild life, require less water, are non-perishable in nature, can be converted into low-volume at field level etc.

2.3 In the last ten to fifteen years, more than 18000 farmers have been engaged in aromatic cultivation in 109 aroma clusters and 178 primary distillation units have been installed by the farmer groups. Total production of aromatic sector (essential oil) is around 600 MT. The sector has been growing at CAGR of 27% (during 2002 – 2017).

2.4 As a result of the potential as well as success of aromatic sector, the State government has decided to expand aromatic sector in a big way by adding 5000 hectares new area under aromatic sector on a yearly basis.

3. The proposes Aroma Park :

3.1 Keeping in view the above facts in mind, Aroma Park is being proposed in the State for following reasons:

• Currently, most of the aromatic produce goes out of the State resulting in farmers getting less remunerative prices for their produce ·
• Industries face logistic problems in collection of raw materials.
• High transportation costs often make purchase from Uttarakhand less remunerative for Industry

3.2 Following common facilities for Aroma Park are being proposed so that the same could be shared by all the industries being set-up in the Aroma Park:

• Aroma business centre which includes conference cum meeting room, guest house, cafeteria, recreation centre, library etc.
•  Vermi-composting unit
•  Fire protection
• Security Collection and disposal of estate waste
•  Provision of medical care
•  Warehouse
• Bank and Post Office  
• Weighbridge
• Central repair workshop are the common service facilities
• Common production facilities like distillation & extraction of essential oil units
• Pilot plant facilities for value addition of aromatic produce
• Parking of vehicles

Common facilities such as, Aroma business centre, provision of medical care, bank & post office, etc can be accommodated in one single building, i.e separate floors/ areas for separate activities. Running and maintenance of guest house can be outsourced on PPP basis.

4. Types of industries proposed in aroma park:

Following industry types are proposed to be set up in the aroma park:

•  Distillation and extraction of essential oil from aromatic produce
• Fractionation of aroma chemicals & isolates
• Fragrance and flavour creation (blending)
•  Dhoop and agarbattimanufacturing
•  Drying & packaging of aromatic & culinary herbs
• Perfumery & deodorant
•  Designing & packaging of various aroma products
•  Flavoured & blended tea
• Traders & exporters/ importers
•  Aroma candles/ diffusers/ Handmade soaps
•  Cosmeceutical
•  Aroma therapy products, etc

5. Land requirement for Aroma Park :

 5.1 As per discussions with representatives of various industry associations, such as, “Essential Oil Association of India (EOAI)”, “Fragrance & Flavour Association of India (FFAI)”, “Sugandh Vyapar Sangh, Delhi” it emerged that around 50 aroma units would be interested in setting up bases in the State.

6. Investment :

 Assuming an average investment @ 10 crore per unit (investment range 5 to 25 crore), total investment is expected to be around INR 500 crore (@INR 10 crore per unit multiplied by 50 units).