NEW DELHI: Mentha oil prices moved lower on Tuesday amid profit-booking. At 4:51 pm, the MCX April contract of mentha oil futures quoted lower by Rs 3.40 or 0.35 per cent at Rs 955.50 per kilogram, gaining some ground after sliding to as low as Rs 932.50 in intraday trade.
Mentha oil had climbed 0.16 per cent to settle at Rs 958.90 per kilogram in the previous session.
Ajay Kedia, managing director of brokerage Kedia Advisory, said that profit-booking was witnessed at higher levels. However, he added, that the upcoming summer season may lead to higher industrial demand.
He recommends buying the April mentha oil contract around Rs 952 for a target of Rs 970 by the end of the current week with a stop loss at Rs 940.
Mentha oil is used by industries such as pharmaceuticals and FMCG for manufacturing soaps, sanitizers and cough syrups. It is also used heavily in the pan masala business. Besides, mentha also commands high demand in the production of cosmetics and confectionery goods.
India is the world’s largest producer and exporter of mentha oil, with the maximum production from Uttar Pradesh.