Yesterday, the prices of mentha oil for the June contract declined by Rs 10.50, or 1.18% to Rs 874.70 per kg, in a business volume of 161 lots at the Multi Commodity Exchange (MCX) due to the profit booking by the traders tracking the decline in the demand in the spot market.
The oil for the July contract also eased by Rs 8.70, or 0.99% to Rs 867.10 per kg, with a trade turnover of 29 lots at the MCX.
The oil for the August contract also fell by Rs 8.70, or 0.99% to Rs 870 per kg in 8 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.