Mentha oil registered mild gains on Tuesday. The mentha oil April delivery contracts rose by Rs 2.1, or 0.22 per cent, to Rs 962.90 per kg on the Multi Commodity Exchange () early in the session before trimming the gains. The contract had settled marginally lower at Rs 960.80 per kg on Monday.
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Ajay Kedia, Managing Director at brokerage Kedia Advisory, said buying at lower levels lifted prices of mentha oil, industry demand for which may increase in the coming summer season.
He recommends buying mentha contracts around Rs 955 for a target of Rs 970 by the weekend with a stop loss at Rs 944.
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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