MCX Mentha Oil settled down by 1.03% at 1241 as there has been an increase in the arrival of mentha. Pressure also seen after the Bihar state government has completely banned all types of pan masala. Currently, this ban has been imposed for 12 months.
Arrival pressure also seen in the market as farmers are now bring their crop in market after Govt had given relief to the farm sector, the government has decided not to levy 2 per cent tax deduction at source (TDS) on cash payments of over Rs 1 crore made through Agriculture Produce Market Committees (APMCs). There were estimations of a 20-25% rise in sowing in 2019 versus last year. It is likely to touch ~3 lakh ha—as per Central Institute of Medicinal and Aromatic Plants (CIMAP).
It should be noted that this year’s production expectation of 38500- 39000 MT stood slightly above the average production of 36,968 MT productions seen in between 2013 and 2018.Therefore expectations of a significant jump in production over last year due to is ruled out.Due to improving exports prospects, estimates for ending stocks has been reduced even lower than previous year.
There were estimations of a 20-25% rise in sowing in 2019 versus last year. The output has not risen in past few years with India producing ~80% of global production and exporting ~75% of its output. Mentha oil spot at Sambhal closed at 1400.20 per 1kg. Spot prices was down by Rs.4.40/-.
