Patchouli oil is produced by steam distillation of the dried leaves of Pogostemon Cablin.
The plant is native to tropical regions of Asia, and is now extensively cultivated in China, Indonesia, India, Malaysia, Mauritius, Taiwan, the Philippines, Thailand, and Vietnam, as well as West Africa.
Indonesia is the world’s largest producer of patchouli, accounting for over 80% of the global market. Patchouli is a perennial species that thrives in warm tropical climates. Current annual production volumes are around 1,000-1,200MT with market demand calculated to be around the same.
Over recent years there has been a shift in regional supplies of patchouli between the different islands of Indonesia. Historically we have associated Java and Sumatra with our patchouli but today Sulawesi represents around 80% of total raw material available. To understand more as to why and how this can affect qualities please read our Elementary Essential Oils report.
Ultra with PT Van Aroma as our production partner are the world's largest exporter and producer of Indonesian Patchouli Oil.
Available grades include 'Dark', 'Light' (iron free) and 'M.D.' (molecular distilled) with P.A. (patchouli alcohol) content ranging from 29PA - 34PA.
Read our latest report on Indonesia presented in October 2015 at the IFEAT conference in Sri Lanka, titled 'Indonesia - Current & Future Market Dynamics'
Most major exporters of patchouli oils are based in Java and Sumatra, even though Sulawesi is one of the biggest producers of the oil. Considering the issues being faced for inland and interisland transport, the availability of oils from these regions will be delayed. Thus, they will not hit the market anytime soon. Most exporters of the oil have forward booking. On the production front, the volumes are expected to be in line or slightly less than in the last few years. In this scenario, price reduction is unlikely. If there is a deflection in price, it will be in the range of 4-8% depending on the forecast. As far as harvest is concerned, the new crop will be harvested beginning mid-June to July. Regular rains in the producing areas are a boon for the crop. Small scale harvesting has already commenced in certain areas, and it should hit the peak in about 1.5-2 months.
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