On improving sowing expectations, mentha oil yesterday decreased by -0.72% to reach 898.1. The price impact will be exacerbated by reports of expanded acreages and slow menthol exports. The price will be under pressure from rising menthol imports as well as China’s restricted purchasing. When compared to the exports of 170.22 tonnes of mentha in April 2022, the shipments of 97.85 tonnes fell by 42.52 percent to that month.
Mentha exports fell by 51.78 percent in April 2023 compared to March 2023 (202.95 tonnes vs. 97.85 tonnes). Bans on gutkha and pan masala in numerous states have resulted in decreased demand for the pan masala sector. In 2020–21, Mentha oil output reached a historically high level. The region stayed almost unchanged from the previous year, but reduced yields had an impact on production.
Due to a drastic reduction in area and a loss in yields as a result of the extreme summer heat, production is expected to drop to about 46,238 MT this year. which in the years 20 and 21 will decrease by around 14%. Menthol oil decreased by -18.9 rupees to close at 1033.4 rupees per 360 kilograms on the Sambhal spot market.
Technically, the market is in long liquidation as evidenced by the market’s drop in open interest, which decreased by 17.81% to settle at 383 while prices fell by 6.5 rupees. Mentha oil is now receiving support at 893.1, and a move below that level could see prices test 888.1 levels. Meanwhile, resistance is now likely to be seen at 903.5, and a move above that level could see prices test 908.9.
