Mentha oil increases due to rise in demand in spot market

Posted By: Staff
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{image-27-mentha-(oil)commodity.jpg}Yesterday, the prices of mentha oil for the July contract gained Rs 9.30, or 1.08% to Rs 864.30 per kg, with a trading volume of 55 lots 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 rose by Rs 8.10, or 0.94% to Rs 868.30, with a trade volume of 230 lots at the MCX.

The oil for the May contract rose by Rs 4.20, or 0.48% to Rs 868 per kg, with a business turnover of 365 lots at the MCX.

Moreover, there was a good trend in the spot markets in the midst of the restricted supply from Chandausi in Uttar Pradesh which 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: commodities, mcx, mentha oil
Story first published: Friday, May 27, 2011, 13:30 [IST]
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