A surge in supplies from fresh harvests resulted in mentha oil’s yesterday price being unchanged at 873.8. As harvesting activities have expanded, supplies have grown in Uttar Pradesh and Bihar. With increased yield and ideal weather, production prospects have improved. Prices will also be under pressure from indications of a decline in menthol exports. The price will be under pressure from rising menthol imports as well as China’s restricted purchasing.
When compared to the 380.12 tonnes exported during the same period in 2022, mentha exports fell by 51.60% to 183.98 tonnes in April–May 2023. Mentha exports decreased by 13.60% from 97.85 tonnes in April 2023 to 86.13 tonnes in May 2023. Mentha exports decreased by 58.96% from 209.90 tonnes in May 2022 to about 86.13 tonnes in May 2023. Gutkha and pan masala have been outlawed in many states, which has resulted in decreased demand from the pan masala sector.
The yields were lower last year, which had an impact on production, but the area remained nearly identical. Mentha oil production in 2020–21 was at an all-time high. Due to a steep reduction in area and a decline in yields as a result of a particularly hot summer, production is expected to drop to about 46,238 MT this year. which will decrease by around 14% in the years 20 and 21.
Mentha oil lost -9.2 Rupees in the Sambhal spot market, finishing at 1014.4 Rupees per 360 kg. Technically, the market is in long liquidation because open interest decreased by -3.32% to settle at 933 while prices remained unchanged at 0 rupees. Mentha oil is now receiving support at 871, and a move below that level could result in a test of the 868.1 level. Meanwhile, a move above that level could result in a test of the 881.3 levels.
