Mentha oil declines due to profit booking

Posted By: Religare
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{image-29-mentha-(oil)commodity.jpg}On April 28, 2011, the prices of mentha oil for the April contract declined by Rs 11.40, or 1.06% to Rs 1,061.50 per kg, with a business volume of 26 lots at the Multi Commodity Exchange (MCX) due to the profit booking by the traders at the prevailing increased levels tracking the decline in the spot market demand.

The oil for the May contract also eased by Rs 10.10, or 0.95% to Rs 1,043.10 per kg, with a business turnover of 70 lots at the MCX.

The oil for the June contract also declined by Rs 7, or 0.73% to Rs 942.80 per kg, with an open interest of 29 lots at the MCX.

Moreover, the higher supply from the growing belts of Uttar Pradesh also influenced the prices of the oil.

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.

Read more about: mentha oil, mcx, investment
Story first published: Friday, April 29, 2011, 12:30 [IST]
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