Jostle to take profit pushes down mentha futures

Mentha oil futures slipped by over 0.50 per cent on Monday as speculators were busy taking profit amid a drop in demand in the spot market.

MCX Mentha futures eased Rs 10.90, or 0.70 per cent, to Rs 1,568.70 at around 10.20 am.

The price of the commodity has risen over 20 per cent during the past two months. According to Motilal Oswal Commodities, spot markets are witnessing strong consumption demand amid restricted supplies. Bumper crop harvest has been discounted and the market is moving north on rising demand from end users.


According to preliminary estimates, acreage under mentha crop will grow this year as farmers take support from higher prices in the recent past.

Sources said all major markets are likely to witness higher inflow of the produce. There could be chances of crop damage to a certain extent due to unfavourable weather conditions, according to the brokerage house.

Mentha oil is one of the important essential oils and is extracted from herb Mentha arvensis through distillation. It is widely used in food and flavourings. In addition to being a popular flavoring agent in food and confectionery preparation, natural menthol has cooling and soothing effect on skin and mucous membrane of human body, making it a useful ingredient in pharmaceuticals and cosmetics industry.

The oil in the crude form is made free of moisture by treatment with dehydrating agents like sodium sulphate, filtered and stored in air tight containers, preferably made up of aluminium or galvanised iron.

Mentha is normally sown in February and March and harvested in May and June.