MCX Mentha oil slipped Rs 61.80 to Rs 1,483.90 at around 10.45 am.
Bumper crop harvest has been discounted in the market and market is moving upwards on rising demand from end users.
Mentha oil prices plunged 4 per cent on Monday morning as there was a rush to take profit.
Prices of the commodity have rallied over 15 per cent in the past month. According to Motilal Oswal, spot markets are witnessing strong consumption demand amid restricted supplies.
“Despite the peak season of harvest in June, prices of mentha oil have risen over 20 per cent since the beginning of June as farmers held back stocks. Farmers are holding back stocks as they are expecting prices to rise to Rs 1,800 a kg in the next 2-3 months. As per preliminary estimates, acreage under mentha crop will rise this year as the farmers are encouraged by higher price in recent past,” Motilal Oswal said.
The commodity mostly makes its way to food and flavourings. In addition to being a popular flavoring agent in food and confectionery preparation, natural menthol has cooling and soothing effect on skin and mucous membrane of human body, making it a useful ingredient in pharmaceuticals and cosmetics industry.
The oil in the crude form is made free of moisture by treatment with dehydrating agents like sodium sulphate, filtered and stored in airtight containers, preferably made up of aluminium or galvanised iron.