Mentha prices rise on overseas orders

AHMEDABAD: Rising export demand for mentha oil, powder and crystals has led to a 15% rise in mentha prices, a key ingredient in the pharmaceutical, confectionery and FMCG industries. Mentha oil prices at the Chandausi spot market were between Rs 1,560 and Rs 1,600 a kg on Tuesday.

"From the first week of January, export orders and queries from China for mentha oil and mentha powder have increased. We expect a good demand this season," said Haryana-based mentha oil manufacturer and exporter, Raman Singla of Silverline Chemical. The company, which clocked a turnover of Rs 250 crore in 2010-11, is looking at a 40% annual growth this year.

Mentha oil prices in the past fortnight have increased by Rs 200 a kg due to poor supply in the market. Contracts of mentha powder are being quoted at $35.50 to $36 a kg, mentha oil at $34 a kg and menthol crystals at $36-$37 a kg. FMCG and pharma companies, including Hindustan Unilever, Colgate , Glaxo, Phizer and Sun Pharma, were the major buyers.

Daily average supplies of mentha oil at Chandausi, Sambhal, Barabanki, Rampur, Badayun and Bareilly in Uttar Pradesh, which produce nearly 85% of the country's mentha oil, were at 200 drum (one drum contains 180 kg). "Arrivals are going to decrease with sowing yet to begin in February. We expect prices to be bullish and see an upward movement of Rs 200 a kg for mentha oil in the coming days," said Naveen Kumar Aggarwal Fauji an arthiya from Chandausi mandi.

With the European and US markets opening in the first week of January, queries will start coming in, he said. "Demand from export markets has not fallen. But rather than buying quarterly stocks, companies are now demanding weekly stocks," he said.