They said that if rains stopped, farmers would have to hurry and harvest before the rains strike again.
Though inconclusive yet, traders estimate production to be close to 50,000 tonnes against the previous season's 32,000 tonnes.
After the rains returned last week, the spot as well as futures markets have soured.
"The sentiment is such that there are few buyers and demand from the domestic as well as overseas markets is dull at this point of time," said a Bareilley-based mentha oil exporter.
In the UP mandis, the rates in the physical market shot up 10.71 per cent from last week's Rs 560 a kg to Rs 620 a kg.
However, futures prices have reacted less to the rains as they are seen to have surged by around 6 per cent to Rs 523 a kg from Rs 494 a kg for the July contract on the National Commodity and Derivatives Exchange.
Chandausi-based trader and exporter, Bhuvnesh Kumar Varshney, said, "If there is no respite from rains, the prices could touch Rs 700 a kg."
This is in contrast to the fact that usually, at this time of the year, when fresh arrivals are expected in the market, the prices tend to come down. India is the only source of mentha oil in the global market. It is used in end products which include pharma, food and confectioneries.
Meanwhile, the issue of mandi tax over mentha oil remains unresolved in Uttar Pradesh.
Though talks are on between the state government and the oil-trading representatives, there has been no breakthrough yet.
