Mentha oil futures fell at the MCX as traders indulged in profit-booking amid fall in demand in the spot market. Moreover, increased arrivals in the physical market from producing belts in Uttar Pradesh also weighed on futures prices of mentha oil.
Mentha oil futures for December 2011 contract, at MCX, was trading at Rs. 1,306.50 per kg, down by 0.65% after opening at Rs. 1,315 against the previous closing price of Rs. 1,315. It touched the intra-day low of Rs. 1,304 till the trading. (At 3.35 PM today).
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.
India's mint belt lies in the country's 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.