Mentha oil rises due to spot demand

Posted By: Religare
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{image-02-mentha-(oil)commodity.jpg}Yesterday, the prices of mentha oil for the June contract strengthened by Rs 3.60, or 0.41% to Rs 873.50 per kg, with a business turnover of 137 lots at the Multi Commodity Exchange (MCX) due to the pick up in the demand from the pharmaceutical units against restricted supply in the physical market.

The oil for the July contract gained Rs 2.70, or 0.31% to Rs 862.60 per kg in 75 lots at the MCX.

Moreover, the restricted supply from the 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 oil, futures, mcx
Story first published: Thursday, June 2, 2011, 13:30 [IST]
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