Mentha oil extends gains on rising demand

Rising demand, low supply help prices move upward

Mentha oil rose for the third day in a row by adding Rs 15.30 to Rs 1,351.70 per kg in futures trade today on rising demand from pharmaceutical units.

Tight stocks position following restricted arrivals from Chandousi in Uttar Pradesh also supported the uptrend in mentha oil prices at futures market.

At the Multi Commodity Exchange, the July contract for mentha oil gained Rs 15.30, or 1.14%, to Rs 1,351.70 per kg, with a business turnover of 321 lots.

The August contract gained Rs 13.40, or 0.98%, to Rs 1,374.50 per kg, with a business turnover of 102 lots.

Marketmen said besides rising demand from pharmaceutical industries in the spot market, tight supplies from Chandausi in Uttar Pradesh mainly helped mentha oil prices to maintain an upward march at futures trade.