The prices of Mentha, both spot and futures, have soared over the last week. According to market sources, the rise is unexpected as the arrival season is due to begin shortly and is not likely to last long. | |
| Depleting stocks in the warehouses of the commodities' exchanges and the increasing role of speculators are said to be contributing to the market rally. |
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| The near-month contract on National Commodity and Derivatives Exchange rose over 11 per cent since the start of this month, reaching Rs 618 a kg from Rs 556 a kg earlier. Similarly, contract for May delivery jumped by 8.71 per cent to close at Rs 600 a kg from Rs 551 a kg earlier. |
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| In line with the futures market, the spot market in Chandausi and Sambal has also surged by over 8 per cent. After hovering at Rs 561 during March, the spot price of Chandausi touched Rs 607 a kg on Tuesday. |
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| "Though the last ten days saw prices shooting up, we expect the current week to see range-bound movement in mentha oil," said Yogendra Singh, an analyst with Religare Commodities. |
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| Sources said the price rise may be the last before bearishness sets in as new crop enters the market in May. |
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| Analysts said that on the spot price front, Rs 625 could be a strong resistance level. "However, in case it is breached, Rs 640 a kg could be the new target as the role of speculators in the market has risen," they added. |
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| The warehouses across the country currently have less than 500 tonne of mentha oil. The carryforward stock of 3,500 tonne is mostly held by exporters. |
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| Reports suggest the stock of mentha oil is lesser in small mandis such as Rampur and Barabanki in Uttar Pradesh, compared to the bigger mandis such as Chandausi and Sambal. |
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| The country's estimated output of mentha oil this year is around 32,000-35,000 tonne, which is jump of over 150 per cent compared to last year's production of 18,000-20,000 tonne. If the market experts are to be believed, the prices this season can go as low as Rs 480 a quintal. |
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