Mentha oil falls due to profit booking

Posted By: Religare
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{image-03-mentha-(oil)commodity.jpg}Yesterday, the prices of mentha oil for the June contract declined by Rs 3.10, or 0.36% to Rs 863.10 per kg, with a business turnover of 130 lots a the Multi Commodity Exchange (MCX) due to the profit booking by the traders tracking the decline in the demand in the spot market.

The oil for the July contract also shed 0.60 paise, or 0.07% to Rs 858.80 per kg in 36 lots at the MCX.

Moreover, the sufficient stocks holdings due to the higher supply from the growing regions also influenced 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, mcx, commodities, futures
Story first published: Friday, June 3, 2011, 13:30 [IST]
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