Mentha oil futures fall as the traders booked profit amid a decline in the demand in the spot market. Moreover, higher supply 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. 1,294.20 per kg, down by 0.26 per cent after opening at Rs. 1,296.50 against the previous closing price of Rs. 1,297.60. It touched the intra-day low of Rs. 1,291.50 till the trading. (At 4.13 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 per cent from Punjab, Himachal Pradesh and Haryana.