Mint Market Update

Current Situation

Distillation in various mint growing areas has begun and will continue through the end of November.

The oil availability has increased in the Chhatarpur areas, whereas oil available is moderate in the areas of Konch. 15% – 25% harvesting of this crop is over. We’re seeing a daily average of 150 drums (1 drum = 180Kgs) available for sale. Yield is good with an estimated 55 Kg/acre, compared to last year’s average of 45 Kg/acre. Total estimated production is 4,500 MT – 5,000 MT. This fresh arrival of oil may affect the prices of crude mentha oil and it’s derivatives in coming days; the impact of this excess oil should last for a couple weeks.

Interestingly, L-menthol content in this oil is about 75% – 77%, whereas oil from (Eastern UP) Barabanki has L-menthol content of about 69-70% and oil from (Western UP) Sambhal/Chandausi has about 72%.

With farmers receiving good prices for their produce namely potatoes and rice, some of the UP farmers are not keen to sell mentha so soon. Farmers from areas of MP (Chattarpur) will sell the oil as many of them cannot hold on to the stocks. With festival season going on, more oil should be coming in over the next 15 days. This means oil flow should decrease after 20 days and then come in intermittently throughout the season. Presently purchase price from farmers is roughly 975 INR/Kg.

About 80% of the chillers (manufacturers of menthol) at Sambhal/Chandausi have shut down their operations due to lower manufacturing margins. This scenario has created a vacuum of Natural DMO. Thereby prices of DMO are more expensive than usual. DMO price is about 85%, which is higher than the normal 75%. While DMO is still in demand, Menthol demand is poor.

Since export benefits are no longer available, offers are approximately 4% higher than expected. Please refer to Figure 1 for year-to-date price history of MCX Oil.

 

MCX Monthly Price History

MCX Monthly Price History
MCX Monthly Price History