Mentha oil increases due to spot demand

Posted By: Religare
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{image-17-mentha-(oil)commodity.jpg}Yesterday, the prices of mentha oil for the May contract rose by Rs 4.80, or 0.52% to Rs 928 per kg, with an open interest of a single lot at the Multi Commodity Exchange (MCX) since the traders enlarged their holdings tracking the rise in the spot market demand.

The oil for the June contract also gained Rs 1.80, or 0.20% to Rs 886.30 per kg, with a trade volume of a single lot at the MCX.

Moreover, the steady trend at the spot markets on account of the rise in the demand in the midst of the restricted supply from Chandausi market in Uttar Pradesh also supported the prices.

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, commodities, oil, mcx
Story first published: Tuesday, May 17, 2011, 13:30 [IST]
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