Mentha oil futures hits lower circuit

Dragged by diminishing demand from pharma companies

Extending its slide for the 8th-straight session, mentha oil hit lower circuit by losing 4% further in futures trade today on continuous off-loading by speculators amid sluggish demand from pharmaceutical industries in the spot market.

Further, adequate stocks in the market following increased arrivals from producing major centre, Chandousi in Uttar Pradesh, weighed on the mentha oil prices at futures trade.

At the MCX, mentha oil for May plunged Rs 68.80, or 4%, to hit lower circuit at Rs 1,650.80 per kg, with a business volume of 29 lots.

The April contract fell by Rs 67.70, or 4%, to Rs 1,625.30 per kg, in a turnover of 7 lots.

Mentha Oil futures have depreciated 35% in the last few days.

Market analysts said the persistent fall in mentha prices in futures trade was mostly due to continued off-loading of positions by speculators following a decline in demand from pharmaceutical industries and exporters against supply pressure.