Mint Market Update

Current Situation

Mint market is quite stable at the moment with no big fluctuations. It seems that all three major consumers of mint (EU, UK, USA) are still seeing low demand stemming from the economical and supply chain impact of COVID-19. Improvement in demand will closely be tied to this situation.

 

Production

Overall 65,000 MT was available this year between harvest and carry over. Of this approximately 45-50% of oil is still available with farmers and stockists. Industries do not have extra stocks, as most are already under contract. Between 10,000-15,000 MT of oil is projected to come to market between now and May; with estimates showing roughly 15,000-20,000 MT will not be sold this year and instead carry over to next harvest season beginning in June.

 

Current Arrivals

Current arrival of oil in market is very low due to expectations on part of farmers and stockists that price might go up. Increased pricing on other items have sustained farmers cash flow and since costs of holding onto oil is low, they are in no rush to sell.  Stockists and well to do farmers can carry stock for a few years, with farmers typically selling when there is a need of cash flow.

On other hand manufacturers would like the price to correct slightly (some tried to manipulate market without success). As long as arrival of oil remains low / just enough to meet demand, price should not crash. At moment demand is on lower side and it matches the arrival.

If demand increases then price can potentially increase as well. All would depend on demand and arrival (and there are too many factors including virus to exactly forecast the trend).

 

Exporters & Manufacturers

There isn’t enough margin in production and most exporters did face problem with sudden increase in prices. Some manufacturers are sold out through February.

Considering price of raw material (Mentha Arvensis Oil) is very high and price of finished product is very low. Either price of finished goods have to go up or raw material has to go down as current price levels are not sustainable.

 

MCX Monthly Price History

MCX Monthly Price History
MCX Monthly Price History from December 2020 – January 2021