Record mentha oil delivery on MCX

1.35 million kg of the commodity, worth Rs 156 cr changes hands on the exchange

The Multi Commodity Exchange (MCX), India’s largest commodity futures trading platform, has witnessed a record delivery of 1.35-million kg, Rs 156-crore mentha oil contract being executed on its platform.

This is the highest delivery executed in mentha oil, which is extracted from mint leaves, in both value and quantity since the contract’s launch in 2005.

Mentha Oil futures on the exchange have significant participation from all spectrum of participants, including the entire gamut of physical market participants, such as aggregators, traders, processors, exporters who manage their price risks by trading on MCX platform.

“There is no denying the fact that MCX mentha oil futures has made an important contribution towards making Indian markets more transparent and efficient and has been instrumental in placing India at the world No 1 position in mentha crystals exports. By promoting exports, MCX is complementing the government’s efforts in fructifying the Make in India initiative,” said P K Singhal, joint managing director, MCX.

The availability of a liquid futures market in mentha oil has bestowed a plethora of benefits to all the stakeholders of the commodity value chain and has aided in developing the ecosystem, including the physical marketing infrastructure of the commodity. Significantly, the transparency in pricing, liquidity, better price discovery, international quality standards and ease of delivery mechanism of MCX are well recognised by the market participants across the spectrum.

In India, consumption of mentha oil, which is extracted from mint leaves, is very high considering its extensive usage for a wide range of products within the namely hygiene products, FMCG, pharmaceutical, perfumery and confectionery.

According to a study (2013) jointly undertaken by Indian Institute of Management, Kolkata, and National Institute of Science, Technology and Development Studies (NISTADS), New Delhi, MCX futures market has created a highly efficient alternative marketing channel in mentha oil value chain.

The total area under mentha plant in India is estimated at 300,000-350,000 hectares with annual mint oil production of 40,000-45,000 tonnes.

Significant part of Indian production is exported in the form of oil and various derivative products of mentha oil like menthol, crystals etc.

In 2014-15, India exported 25,750 tonnes of mint oil and products, earning foreign exchange worth Rs 2689 crore.