Mentha Oil Price Drops by 0.45%, on 4-April-2024

Mentha Oil has a high demand for produce in different states of India like Uttar Pradesh Bihar and Punjab. Produced from the mint plant this is an Essential oil for various remedies. Mentha is an aromatic herb where the leaves are dried and used as Mentha oil. Mentha oil plays a significant role in the market used in pharmaceuticals, food, soaps, self-care, and personal care products. India is declared as the leading producer of Mentha oil.

Downfall in the price of Mentha Oil:

On April 4 2024 at 3:04 pm, Mentha Oil price rate had a significant downfall of 0.45%. According to Multi Commodity Exchange of India Limited (MCX) the previous day the rates of the oil declined by 0.45% that is from Rs. 937.90 per unit to Rs 928.00 per unit. Mentha oil is on future contracts expiring on 28 June 2024. This could be one of the reasons for a drop in the price of oil rate to Rs 928.00.

This oil trades on MCX where traders from around the country can buy or sell the oil contracts produced from different states. The decline in the oil rates indicates less usage of the oil in the market. Thus, decreasing its value as compared to the previous trading sessions as the market is export-oriented.

 In recent times the prices of the oil have been quite volatile. During this time India emerged as a major export hub of this oil. Ton liters of oil from India is exported to the world every year. Due to the liquid texture of the oil, the value chain participants can hinder this business risking the original price of the Mentha oil.

Factors affecting the rates of Mentha Oil:

• The traders and investors are still monitoring closely what could be the exact reason for the fluctuation of the Mentha oil rates to make better decisions regarding their trade and investment strategies. Some predicted factors are:
• Demand from different countries like the United States and China has affected the price.
• The demand for oil increases in winter by the pharmaceutical companies.
• The recent arrival of the harvest season in the country
• Climate changes like cold waves and heavy rains have produced harmful leaf deformation affecting the rate of oil in the market.
• The USD to INR exchange and vice versa due to the import and export of oil can also be one of the factors that affect the rates of Mentha oil.

Factors like demand-supply dynamics, market speculation, geographical conditions, political events,  and macroeconomic factors are some of the reasons that majorly affect other commodities in the market.

As declared on the website of MCX the Mentha oil is still in stock at the MCX warehouses and is available with farmers also. These indicate the supply and the influence of the oil value in the market influencing people to still purchase the oil even after its price decrease.