Nilgiris’ iconic eucalyptus oil industry on the brink of collapse

An abandoned eucalyptus oil shed in Udhagamandalam
| Photo Credit: Rohan Premkumar

The Nilgiris’ world-famous eucalyptus oil industry, which is almost as iconic as its homemade chocolates, tea, and varkey, is on the verge of collapse. From numbering over 500 eucalyptus-producing sheds over a decade ago, less than 20 are currently operational across the district due to climate change affecting eucalyptus trees and cheaper, synthetic oils flooding the market. This is impacting the livelihoods of thousands of people dependent on the industry.

A.K. Shankaranarayanan, who has been working in eucalyptus oil sheds for over 25 years, said that in Udhagamandalam and surrounding areas alone, the number of sheds manufacturing the oil has come down from more than 50 a few years ago to less than five currently.

One of only a handful of eucalyptus oil-producing sheds in Udhagamandalam
| Photo Credit:
Rohan Premkumar

“One of the reasons is that the eucalyptus trees have become diseased, and the leaves are not fit for manufacturing the oils,” he said.

Dying trees

M. Mohan, the owner of a shed near Khandal in Udhagamandalam, said that around five years ago, the leaves of eucalyptus trees started withering and the trees themselves started dying. “We used to operate four sheds, but now we operate only one. Moreover, more than a 100 people used to supply leaves to us; barely four or five people still go to collect the leaves now,” he told The Hindu.

Inside a eucalyptus oil-producing shed
| Photo Credit:
Rohan Premkumar

M. Madhu, 60, a former worker who used to collect leaves from near the Old Gudalur Road, said she received ₹10 per kilogram of leaves collected. “We used to be able to collect the dried leaves quite easily, but now, it is a laborious task which requires us to walk long distances. And so, most of us have given up the work,” she said. Previously, people collecting eucalyptus leaves were a common sight near forested areas in the Nilgiris, but most people have switched to other jobs due to the crisis the industry was facing, she added.

Impact of climate change

Godwin Vasanth Bosco, a restoration ecologist from the Nilgiris, said that he believes that climate change had severely affected the health of the trees. “It is not just eucalyptus, but even wattle and native Sholas,” he said, adding that he suspects that climate change was compromising the health and immunity of the trees, weakening them, making them more susceptible to disease and more likely to fall and be affected by fire.

Another shed owner, S. Sidharthan, from Pudumund, said that he estimates that eucalyptus oil production in the Nilgiris now only totals around 1,000 litres a week. “But thousands of shops continue to sell eucalyptus oil, which is mostly adulterated,” he alleged.

‘Camphor oil being sold as eucalyptus oil’

Mr. Sidharthan alleged that what is being sold as eucalyptus oil in shops is nothing more than camphor oil, packaged as eucalyptus oil from the Nilgiris. “There are also reports that the sellers are importing eucalyptus oil from other countries,” he further alleged, adding that the government needed to clamp down on false advertising to protect what remains of the industry in the Nilgiris.

“Sellers should be transparent, and if they are selling oil imported from other countries, or camphor oil, then they should be transparent and package it as such. It is unethical to label these products as Nilgiris eucalyptus oil, as this also contributes to undercutting prices for our oil,” he said.

Dried eucalyptus leaves being readied to be made into eucalyptus oil at a shed in Udhagamandalam
| Photo Credit:
Rohan Premkumar

Manufacturers like Mr. Sidharthan believe that it is only a matter of time before the industry completely collapses, unless efforts are taken by the government to promote the industry. “We used to be able to sell one litre of oil for around ₹1,500, but now, a litre of oil barely fetches us ₹900. Combined with the limited amount of oil that can be produced, and the adulteration that happens, it is financially untenable for us to continue producing the oil,” he said.