Mint Market Update

Current Situation

Production: The stock level of Mentha Arvensis oil is plentiful and readily available. Including carryover stocks until the next crop at the end of June.

Mentha Arvensis Crop Production & Exports
Mentha Arvensis Crop Production & Exports

Supply: The supply is currently limited; farmers are selling smaller quantities even though there is not a shortage. The current price level of the INR is 1030-1035. However, when the price is below INR 1000, farmers and collectors restrict the supply and are not willing sell at lower prices. The farmers will release more oil into the market if the price falls short.

Demand: The demand is lower than previous years due to the pandemic and lock-downs. The low demand also shares insight that many areas are shut down and do not find it worthwhile to make menthol with low exchange rates.

Pricing: The price remains stable. The price has not decreased despite the little market demands. Whereby there is a balance between supply and demand.

MCX Pricing History & Currency Trends
MCX Pricing History & Currency Trends

 

Future Outlook

Production: Protectively 55,000MT of Mentha Arvensis oil will be produced for the 2021 Harvest season. Whereby, there is roughly 20,000MT of 2020 carryover material.

Mentha Arvensis Crop Estimate 2021
Mentha Arvensis Crop Estimate 2021

Supply: There is limited supply until H2 2021 caused by the temporary small increase in raw material. We can anticipate more synthetic replacements in the market. This could cause a shortage of Cornmint DMO and Cis 3 Hexenol if smaller units collapse. Pure and Natural products will be difficult to obtain.

Demand: The demand is to recover by H2. Spot demand will continue for the spring. However next seasons demand will outweigh the supply; caused by the lack of carryover stock due to the lockdown and global pandemic.

Pricing: Mentha Arvensis oil prices are at their lowest. The price of menthol may decrease, caused by synthetic manufacturers. Additionally, the exchange rate of the dollar has placed pressure on pricing as well. By H2, pricing for Mentha oil should become better.

 

Pricing History

Monthly Price Levels: There are no significant changes.

Currency Impact: The impact of the USD to INR has fluctuated. Since the dollar has weakened below 73 INR, this has placed pressure on prices and we do not anticipate this to disappear.

MCX Price Development (December 2020 – February 2021)

MCX Price Development (December 2020 - February 2021)
MCX Price Development (December 2020 – February 2021)