| Mentha oil futures are giving the highest monthly returns of around 4-5% on the Multi Commodity Exchange of India, Anjani Sinha CEO of MCX said last week. “This gives us an excellent opportunity for investment,” Sinha said.
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| Sinha was speaking at a day-long seminar on investment and hedging in commodity futures.
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| He said the crop cycle of mentha oil, coupled with its limited availability, has made it a valued commodity in both Indian and foreign markets. “Mentha oil is produced only in June and July, which means it has to be stocked for the rest of the year,” he said.
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| India produces about 15,000 tonne of mentha oil, of which 3,000 tonne are exported. The oil is derived from distillation of mentha arvensis leaves, and is used in flavouring and perfumery units.
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| “The worth of the mentha oil industry could be in the range of Rs 700-800 crore,” Sinha said. “During the production season, it costs Rs 200-300 a kilogram, which rises to Rs 600-700 a kg in the lean season.”
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| He spoke of mentha oil to illustrate the growth potential of India’s nascent commodity futures market.
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| “India’s commodity markets are set to become as bullish as its financial markets,” he said. On the MCX, September contract of mentha oil closed at Rs 504 per 1 kg, up 1.03% from Thursday. October contract ended at Rs 514, up 1.24%. |
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