NEW DELHI: Mentha oil prices moved in a tight range on Thursday. mentha oil futures for April 30 delivery traded Rs 1.40, or 0.15 per cent, lower at Rs 954.50 per kg at 3:20 pm, having quoted within a range of Rs 954.50-957 earlier during the session. On Wednesday, the April 30 contract had settled 0.24 per cent lower at Rs 955.90 per KG.
Ajay Kedia, Managing Director at brokerage Kedia Advisory, said a likely increase in sowing has pulled mentha rates to lower levels. However, attractive price levels and the onset of the summer season can boost the demand for the commodity going forward, he said.
Kedia recommends buying mentha oil April futures around Rs 950 for a target of Rs 965 per kg in the next two sessions with a stop loss at Rs 965.
Mentha oil is used by industries such as pharmaceuticals and FMCG for manufacturing soaps, sanitizers and cough syrups. It is also used heavily in the pan masala business. Besides, it also has high demand in the production of cosmetics and confectionery goods.
India is the world’s largest producer and exporter of mentha oil, with the maximum production from Uttar Pradesh.
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