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This year’s mentha oil production is likely to fall nearly 30 per cent to 40,000 tonnes from 55,000 tonnes last year with the area under cultivation expected to drop 20 per cent to 17,500 hectares. This is because farmers turned to other crops because of lower prices of the aromatic herb.
Prices had risen to an all-time of an average of Rs 2,570 a kg in March 2012, following a massive shortage in availability despite huge global demand. Since then, it has declined steadily, to reach Rs 716.50 a kg this July. Total production of mentha oil last year was 55,000 tonnes, of which 40 per cent was carried forward to the current year, further impacting prices. Meanwhile, arrivals on the spot market have increased, especially from Chandausi in Uttar Pradesh.
Traders expect export demand for the spice to go up in the coming weeks. “Export demand is expected to pick up fro January. Currently, prices are holding up due to the acreage being lower,” said Anil Agarwal, a Chandausi -based mentha oil trader.
Mentha oil is used extensively for manufacturing gutkha, cosmetics (toothpaste, mouthwash, shaving creams, shampoos), chewing gums and household cleaning products.
In India, mentha oil is derived through distillation of mentha arvensis, largely grown in Uttar Pradesh, parts of Punjab, Himachal and Bihar. Mentha oil is used for flavours and fragrance in the pharmaceutical, fast-moving consumer goods and cosmetics sectors. Mentha oil is also used extensively for gutkha manufacturing, cosmetics (toothpaste, mouthwash, shaving creams, shampoos), chewing gums and household cleaning products.
