On improving sowing expectations, mentha oil yesterday decreased by -0.4% to 921.1. Prices will be affected by news of increasing acreages and slow menthol exports. Prices will be under pressure due to rising menthol imports and China’s restricted purchase. Menthol shipments fell by 42.52 percent to 97.85 tonnes in April 2023 from 170.22 tonnes in April 2022.
Mentha exports decreased by 51.78% from 202.95 tonnes in March 2023 to 97.85 tonnes in April 2023. 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 loss in yields as a result of the extreme summer heat, production is expected to drop to about 46,238 MT this year. which is 2021 will decrease by around 14%. Menthol oil experienced a -29.1 rupee decline in the Sambhal spot market, closing at 1053.9 rupees per 360 kg.
Technically, the market is experiencing long liquidation as open interest dropped by -2.32% to settle at 631 while prices fell by -3.7 rupees. Mentha oil is now receiving support at 914, and a move below that level could result in a test of 907 levels. A move above that level, however, could result in a test of 933 levels.
