Mentha oil futures dip 7%

COMMODITY SPIKES

Mentha oil continued its fall in the last week. The commodity has not been able to gather strength for over more than a period of three weeks. Dip in export demand is taking its toll on the market.

On the Ncdex, Mentha oil futures plunged 7.52 per cent to Rs 529 a kg on Saturday against Monday's close of Rs 572 a kg. The commodity fell in the physical market too from Rs 640 a kg to Rs 610.

According to analysts, the demand in the domestic market is not enough to push up the falling rates. Stock availability is higher than demand.

However, Rajeev Agarwal, owner of a mentha industrial plant in Bareilly, said the regular demand for the commodity in the market is remaining stable. He pointed out that the prices in the futures market is Influencing physical market prices.

On Saturday, the difference between the futures and spot rates was Rs 81 a kg. Analysts said that after the lower support level of Rs 625 a kg was broken last year, it seems tough for the commodity to hit back in the short term.

They said the decline may continue as the last year's prices were even lesser than the current rates.