Mentha oil prices are likely to decline in the next fortnight with the increase in new crop supplies in various producing centres of Uttar Pradesh, traders said on Tuesday.
Arrivals of new crop have started in various producing centres of Uttar Pradesh such as Sambhal, Chandausi, Rampur, Badaun and Barabanki.
Prices are likely to decline in coming days with the increase in pace of new crop arrivals, said a local trader.
In Chandausi, mentha oil prices are ruling around Rs 800 per kilogram but may decline in the days ahead as new crop supply will pick up, said a trader there. Daily arrivals are around 225 drums of 180 kilogram each, he said.
Today, prices declined by Rs 8 per kg on weak demand, said a Sambhal-based trader. Buyers are cautious in making fresh purchases hoping for a further decline, he said.
Farmers are holding back stocks in anticipation of lower production due to decline in acreage, he said. ?Farmers went for sugarcane crop because of high prices during the time of sowing?, said one Delhi based trader.