Mentha oil spot and futures prices have weakened by Rs 10-15 a quintal in the last fortnight, mainly on increased offerings by stockists and farmers, as against weak demand from exporters and local pharma companies supported by higher stocks at national exchange warehouses.
Spot prices of mentha oil were quoted around Rs 520-525 a quintal at Chanduasi mandi and Rs 505-510 a quintal at Barabanki mandi of Uttar Pradesh on Thursday. The mentha oil November contract on MCX was quoted around Rs 516 a quintal and near month October contract was quoted at Rs 504 in intra-day trade on Thursday, on lack of fresh buying support as fresh arrivals are expected to pick up, and low export demand, a trader said.
The Uttar Pradesh government has imposed a 2.5% mandi tax on buyers, which will impact fresh buying to a limit. Spot and futures prices were on the decline in the past 2 weeks on steady inflows and some select offerings by stockists.