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Spot Mentha Remains Steady Amid Range-Bound Futures

11 Jan 2019 6:10 pm
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NEW DELHI (Commoditiescontrol) - Spot mentha oil prices remained mostly steady at key markets of Uttar Pradesh on Friday, tracking a range-bound move in futures.

However, the overall sentiments are still bearish amid subdued demand and as acreage is seen rising this year with farmers being lured to cultivate mint following lucrative returns in the past couple of years.

Mentha offers good value proposition as the cost of production of mentha oil is below Rs 500 a kg, while the spice oil is consistently traded at Rs 1,500-1,800 a kg. A fall of even 30 percent in prices from current levels, as expected around the time of harvest in Apr-May, could still ensure two-fold returns to farmers due to low production costs.

Mentha oil prices in Chandausi, Sambhal and Rampur quoted at Rs 1,765/kg, Rs 1,700 and Rs 1,710, respectively.

As per market source, demand continued to remain subdued for mentha oil. Exporters are also restraining themselves from buying, anticipating some correction in prices.

India meets around 80 percent of the world natural mentha oil demand with its use in pharmaceutical, food safety, culinary, cosmetics, insecticides, scent and aromatherapy.

Weak demand for mentha oil in domestic and overseas markets, high availability of stocks and talk of import of the synthetic variant will likely to keep prices subdued, said a trader.

According to reports, German company BASF, the top producer of synthetic menthol, has recently restarted exports to India, which is expected to lead to a steep fall in prices in the next few months.

At the Multi Commodity Exchange (MCX), mentha oil for delivery in January was trading higher by Rs 3.10 or 0.19 percent at Rs 1,609 per kg.

(By Commoditiescontrol Bureau)


       
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