Mentha Oil Rate Today
Mentha oil fell nearly 1.5 per cent last week and settled at Rs 1197 per kg. At the same time, on Monday, today Mentha is again seeing a decline. Mentha is trading at a price of Rs 1185.90, weakening by about Rs 9.80. Mentha opened today at a price of Rs 1189 per kg. Experts say that due to Corona virus outbreak in China, demand for almost all types of agri commodities has decreased. Due to this, there is a pressure in commodity prices. Expert says that the new season of mentha sowing has started. This time also, the yield is expected to be high as in the previous season, so there is no expectation of a higher price rise.
How to make strategy in mentha
Ajay Kedia, director of Kedia Advisory, says that the corona virus is a kind of concern for the whole world. There is a large consumption of commodities in China. But these days the demand of other agri commodities including mentha from China is also weak. In such a situation, there is pressure on mentha prices. At the same time, a new season of sowing is now starting. The yield is expected to be higher this time too. In such a situation, the expectation of higher prices from here is less. Exports are expected to remain weak further due to sluggish demand. In such a situation, pressure will be seen on Mentha. More action will be seen at the domestic level itself.
He says that if we talk today, there is support at the rate of Rs 1190.6 in Mentha. If this price breaks, Mentha can break to the level of Rs 1184.7. On the other hand, Mentha has a resistance at Rs 1206.6. If this level is broken, Mentha can strengthen up to Rs 1216.1. Today Mentha will be in the range of 1170.1-1195.5.
Pressure on prices due to high yields
Talking about the current season 2019-20, the production of mentha oil has been very high. Market sources say that in 2019-20, around 48,000-50,000 tonnes of mentha oil was produced. Last year 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.
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 per cent of the total mentha oil production in the country.