Mentha oil prices fell by 2.26 per cent to Rs 1,199.80 a kg in futures trade today as speculators offloaded their positions, tracking a weak trend at spot market.
On Thursday, it gained 0.32 per cent to Rs 1,227 a kg on MCX.
At the Multi Commodity Exchange, mentha oil for delivery in July fell by Rs 27.70, or 2.26 per cent, to Rs 1,199.80 a kg, with a business turnover of 519 lots.
Similarly, the oil for delivery in August lost Rs 26.60, or 2.13 per cent, to Rs 1,219.80 per kg, with a business turnover of 133 lots.
Market analysts said speculators offloaded positions on the back of sluggish demand from pharmaceutical units against adequate stocks position which pulled down mentha oil prices at futures trade.
According to the Spices Board of India, mint product exports were down 15 per cent at 14,750 tonnes in financial year 2011-12. An export target of about 17,750 tonnes is set for FY’13.
Total daily arrival across the major spot markets in UP was in the range between 800 and 950 drums (1 drum equals 180 kg).
Mentha oil production is expected to be about 52,000 tonnes against 38,000 tonnes reported last year, according to trade sources.