Mentha oil drops as profit goes off table

Mentha oil prices weakened in futures market on Tuesday after a spell of profit booking.

MCX Mentha Oil prices were hovering at Rs 1,796.50 per kg at around 11 am, down 0.91 per cent against its previous close.

According to SMC Global Securities, mentha oil futures (September) would test Rs 1,850-1,870 levels on the higher side.

Heavy rains have battered most parts of the Uttar Pradesh over the last 12-13 days, leading to flooding of many regions. The fall in arrivals, along with pickup in demand from stockists and bulk consumers, mainly led to uptick in mentha oil prices.

Besides, farmers and stockists are holding their stocks expecting better returns ahead and gradually selling their stocks, SMC added.

Derived from herb Mentha arvensis through distillation, mentha oil is chiefly used for food and flavourings.