On June 7, 2011, the prices of mentha oil for the July contract fell by Rs 6.20, or 0.71%, to Rs 865.40 per kg, with a business volume of 36 lots at the Multi Commodity Exchange (MCX) due to the profit booking by the traders tracking the slow demand in the spot market.
The oil for the June contract declined by Rs 5.80, or 0.65%, to Rs 876 per kg, with a trade turnover of 206 lots at the MCX.
The oil for the August contract also lost Rs 3.90, or 0.44%, to Rs 868.50 per kg, with a business turnover of nine lots at the MCX.
Moreover, the sufficient stocks holdings due to the higher supply in the spot market from the growing belts also influenced the prices.
Mentha oil is one of the important essential oils. It is extracted from herb Mentha arvensis through distillation process. It is widely used in food and flavourings
Indias mint belt lies in the countrys "breadbasket," spanning the states of Uttar Pradesh, Punjab, Himachal Pradesh, Haryana and Bihar. About 80% of the crop in India comes from Uttar Pradesh (Rampur, Moradabad, Bareilly, Barabanki and Badaun) and the balance 20% from Punjab, Himachal Pradesh and Haryana.
India will always play an important role in world mentha oil market, with a never ending demand from the cosmetics and food industry and production restricted to few countries.