Exports of mentha oil products are set to rise by 30% this year. With a bumper crop at home, market experts said that India being one of the fewest growers of mentha oil, exports may reach beyond 18,000 tonne as against 14,000 tonne exported last year.Total production of mentha oil in the country is stipulated to be close to 30,000 tonne. Domestic consumption will corner around 9,000-10,000 tonne leaving almost a carry forward stock of not less than 2,000 tonne.Interestingly, it is despite the fact that rupee appreciation has brought a slight slow down in exports with exporters' margins continuously squeezing. "Whatever exports are being done are of old bookings. Presently, bookings have slowed down," said Rajeev Saini, a Bareilly-based mentha oil trader. The current outgoing consignments of mentha products were booked in January-April period, much before the crop hit the market.However, industry sources said that export will be on the higher side this year. Presently, the spot rates of mentha oil in the mandis of Uttar Pradesh are ranging between Rs 510 and Rs 525 a kg. With processing and transport charges adding up another Rs 150 a kg, the overall cost of 1 kg of menthol bolds and crystals go up to around Rs 670 a kg (freight onboard). With overseas rates falling to around $ 16-17 a kg from $18 in the last over a month, exporters are feeling the heat.According to commodity analysts, the coming winter will see rise in demand from export markets as well as domestic front. India has been exporting mentha products to China and UK. "It is a fact that rupee effect is there. But it will have no impact on exports as global demand is good and India is the only producer of mentha oil," said Rajeev Agarwal, another trader in Bareilly.Several mentha oil processing plants (chilling plants) have sprung up in Jammu & Kashmir as the players enjoy tax incentives there.
