Mentha oil futures were down two per cent to Rs 1,342 a quintal on Thursday, giving in most of the gains registered in the opening session.

Investors preferred to book profit after a sharp rally in prices during the last couple of sessions. In the last one week, mentha oil futures have gained six per cent.

Prices at the Chandausi spot market in Uttar Pradesh were down 0.45 per cent to Rs 1,480 a quintal on Thursday.

The overall acreage under mentha has increased to 2.1 lakh hectares this year from 1.75 lakh hectares recorded in the same period last year, according to market estimates. Production may increase by 30 to 40 per cent.

Arrivals of the fresh crop have started in the main sowing regions and currently stand around 1,200 drums (each drum weighs 180 kgs).

Though mentha futures may trade on the lower side, demand is expected to revive as stockists in the domestic market may accumulate stocks in anticipation of better demand from importing countries.

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