On June 8, 2011, the prices of mentha oil for the August contract rose by Rs 6.90, or 0.79% to Rs 883.50 per kg, with trading volume of 49 lots at the Multi Commodity Exchange (MCX) since the traders enlarged their holdings tracking the pick up in the local and export demand.
The oil for the June contract also rose by Rs 6.70, or 0.73% to Rs 893.30 per kg, with a business volume of 215 lots at the MCX.
The oil for the July contract also moved up by Rs 5, or 0.57% to Rs 880.50 per kg, with a business volume of 54 lots at the MCX.
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.