Due to improved planting conditions in UP and Bihar and sluggish export demand, menthol oil yesterday declined by 0.6% to settle at 961.6. Efforts to plant have benefited from the recent rainy season in Uttar Pradesh and Bihar. Mentha’s seeding activities would benefit from the predicted higher-than-average May rains. The price will be under pressure from rising menthol imports as well as China’s restricted purchasing.
When compared to April through March of the previous year, mentha exports fell 10.39% to 2,430.49 tonnes, down from 2,712.39 tonnes. Mentha exports fell by 3.71% in March 2023 compared to February 2023, when they were around 202.95 tonnes versus 210.78 tonnes. Mentha exports fell by 7.24% in March 2023 to roughly 202.95 tonnes from 218.78 tonnes in March 2022. The gutkha and pan masala industries have suffered a decrease in demand as a result of gutkha and pan masala bans in many states.
The area remained nearly the same as the previous year, but the lower yields had an impact on production, which led to the record-high production of Mentha oil in 2020–21. Due to a substantial reduction in area and a decline in yields as a result of the extreme summer heat, production is expected to drop to approximately 46,238 MT in the current year. By the years 2021–2022, it will have decreased by almost 14%.
Mentha oil lost -4 rupees on the Sambhal spot market, finishing at 1128 rupees per 360 kilograms. Technically, the market is experiencing new selling as open interest increased by 6.77% to close at 568 while prices are down -5.8 rupees. Mentha oil is now receiving support at 958.5, and a move below that level could result in a test of 955.3 levels. Resistance is now expected to be seen at 966.9, and a move above that level could result in prices testing 972.1.