Mentha oil declines 4% on profit-booking

Supply pressure from producing belts in Uttar Pradesh also weigh on futures prices

Mentha oil prices fell sharply by Rs 49.90, or 4% to hit lower circuit at Rs 1,196.60 per kg in futures trade today as traders indulged in profit-booking amid subdued demand in the spot market.

In addition, supply pressure in the physical market from producing belts in Uttar Pradesh also weighed on futures prices.

At the Multi Commodity Exchange, mentha oil for delivery in May tumbled by Rs 49.90, or 4% to hit lower circuit at Rs 1,196.60 per kg in a business volume of 260 lots.

The June contract shed Rs 37.30, or 3.01% to Rs 1,203.90 per kg, in business turnover of 701 lots.

Market analysts said the fall in mentha oil prices at futures trade was mostly due to profit-booking by speculators and weak trend at spot markets on subdued demand.