Mentha oil futures hit lower circuit, tumble 4%

Mentha oil prices decline by 4% to hit lower circuit at Rs 1,438.30 per kg in futures trade today as speculators offloaded their positions due to considerable fall in demand at prevailing levels.

Adequate stocks availability in the physical market following increased arrivals from producing belts also put pressure on mentha oil prices.

At the MCX, mentha oil for delivery in May lost Rs 59.90, or 4%, to hit a lower circuit at Rs 1,438.30 per kg, with a business turnover of 10 lots.

The June contract plunged by Rs 55.90, or 4%, to Rs 1,342.60 per kg, with a business turnover of 130 lots.

Analysts said offloading of positions by speculators, triggered by sluggish demand from pharmaceutical units in the spot market, amid adequate stocks mainly kept pressure on mentha oil prices at futures trading.