Citronella grows well in tropical and subtropical climates. It prefers warm temperatures, high humidity, and well-drained soils. To extract the oil, harvested leaves undergo steam distillation. The resulting liquid is rich in citronellal and geraniol. It is widely used in insect repellents, soaps, perfumery, aromatherapy, disinfectants, and household cleaners.

There is irregular supply and limited fresh availability of Indian citronella oil in the market. This is primarily due to persistent rainfall across key growing regions such as Assam, Karnataka, Kerala, and parts of Odisha. The per-acre yields have reduced in these regions and harvest has also been delayed. Oil production has fallen sharply as cultivation acreage continues to decline and farmers shift to higher-return crops. The sector is also suffering from labour shortages, especially women who form the primary workforce for cutting and machine operations. This has slowed distillation and reduced output efficiency. There is steady domestic and export demand for the oil. Until normal production resumes, the market is expected to stay volatile. Oil prices have firmed due to the tight supply situation in the market.