Mentha oil futures are seeing good recovery on Thursday. Mentha today strengthened by about 40 rupees and crossed 1200. Currently, it is trading at a price of Rs 1195.2 per kg with a gain of Rs 31. On Wednesday, Mentha settled 0.66 percent up to settle at Rs 1160.7. At the same time, today it was shown to be trading in the range of 1160.50 to 1210 rupees. Expert says that mentha gained momentum due to short coverings on Wednesday. Now, with the opening of companies or factories in some countries including China, mentha demand is expected to increase. These days the demand for medicines to protect against any viral has also increased a lot. Due to this, mentha can get some more speed in the rule term. But it is difficult to sustain at the upper levels.
How to trade in Mentha
Ajay Kedia, director of Kedia Advisory, says that the activities of factories have intensified in some countries, including China, due to which the demand for mentha has come. At the same time, these days there is a cold, cough, the demand for medicines has increased in such a condition. Mentha is used a lot in the pharma industry. Due to this, there can be benefit of increasing demand in the rule term. Further, Mentha can also touch 1240 level. But the way the corona virus is spreading in many countries of the world, there is no expectation of a sharp rise in the prices of agro commodities. Sentiments are still not getting strong regarding Mentha.
Due to the corona virus, there is a drop in commodity prices worldwide. He says that like last year, mentha yields are expected to be high. Due to which Mentha’s market sentiment has weakened. Due to this, selling may come again if the momentum comes. Talking about today, Mentha has support on the down side at Rs 1144.2. If the level breaks, Mentha may weaken to Rs 1127.6. At the same time, it can touch 1240 level in the next few days.
Used in pharma and cosmetic industry
Mentha oil is most used in pharma industry, cosmetic industry, FMCG sector as well as confectionery products. India is the world’s largest mentha oil producer and exporter. The highest yields of mentha oil are in UP. UP accounts for about 80 percent of the total mentha oil production in the country.
In the previous season, mentha oil production was very high. According to market sources, in 2019-20, about 48,000-50,000 tonnes of mentha oil was produced. Whereas in 2018–19 it was between 33,000–35,000 tonnes. Due to this, the availability of mentha was very high and the prices could not rise much. About 75 percent of mentha oil produced in the country is exported. Therefore, more foreign demand than domestic plays a big role in fixing prices.