Mentha oil increases due to rise in spot demand

Posted By: Religare
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{image-01-mentha-(oil)commodity.jpg}Yesterday, the prices of mentha oil for the June contract rose by Rs 4.80, or 0.55% to Rs 870 per kg, with a business turnover of 160 lots at the Multi Commodity Exchange (MCX) due to the steady trend at the spot markets tracking the rise in the demand from pharmaceutical units.

The oil for the May contract traded marginally higher by 20 paise, or 0.02% to Rs 872 per kg in seven lots at the MCX.

Moreover, the reduced supply from the growing belts from Chandausi 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: meantha oil, mcx, commodity
Story first published: Wednesday, June 1, 2011, 13:30 [IST]
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