Mentha oil prices edged lower on Monday amid lukewarm demand in the spot market. At 5:09 pm, mentha oil futures trading on the Multi Commodity Exchange () traded lower by Re 1, or 0.1 per cent, at Rs 961.50 a kg, having moved in the Rs 954-968 range earlier in the session.
In the previous session, mentha oil had declined 0.23 per cent to settle at Rs 962.50 a kg.
Ajay Kedia, Managing Director at brokerage Kedia Advisory, said sowing is going on for the commodity, and industry demand may increase in the coming summer season.
Some estimates shows mentha sowing in the country can match last year’s levels.
Kedia recommended buying mentha contract around Rs 955 for a target of Rs 970 by the end of the week. He advised investors to keep a stop loss at Rs 945.
Mentha oil is used by industries such as pharma and FMCG for manufacturing soaps, sanitizers and cough syrups. It is also used heavily in the pan masala business. Besides, mentha also commands high demand in the production of cosmetics and confectionery goods.
India is the world’s largest producer and exporter of mentha oil, with Uttar Pradesh accounting for the largest output.