Mentha oil prices dip 7% on arrivals

Spot prices of mentha oil dropped by 7 per cent in the last four days on the back of crop arrivals. The arrivals, which have started in small quantity, are likely to pick up momentum by mid-June, pulling the spot prices down by another 9 per cent, according to traders.

The spot prices came down to Rs 545 a kg in Chandausi on Monday from Rs 585 a kg last week.

The mentha market seems to be heading for a free fall, with an estimated bumper output of around 30,000 tonnes this year, up by 65 per cent from the last year's figures. Another factor for the decline is a subdued demand in the market, both domestic and overseas. "The market is full of sellers and no buyers," said a trader.

Buyers are expecting a further fall in the domestic prices this week and are likely to make purchases only after that. "Marketmen are well aware of the bearish sentiment, which is going to grip the market more strongly in the days to come and therefore no one wants to shell out extra money," said a Mumbai-based commodity analyst.