(MENTHA OIL)

Maminul Islam.

A14018

INTRODUCTION
>Mentha oil is derived by steam distillation of Mentha Arvensis (a
Japanese mint) leaves, the basic raw material required for the production
of menthol.
>In India, there are two types of menthol: crystals and flakes. Menthol is
available in different shapes and sizes such as large crystals (bold),
medium crystals, small crystals, and flakes in shape of powder.
>Menthol crystals are the basic ingredients for toothpaste, mouth
fresheners, pharmaceuticals, ayurvedic and Unani medicines, chewing
tobacco, pan masala, pain balm, confectioneries, cosmetics, and
fragrances industries, etc.

GLOBAL SCENARIO
>About 32,000 MT of mentha oil is produced in the world from about 0.29
million hectares of land with an average productivity of about 110 kg per
hectare during 2008.
>India is the largest producer and exporter of mentha oil. At present, the
major producers of mint oil in the world are India (80%), China (09%),
Brazil (7%), and the US (4%).
>Mentha arvensis is cultivated in semi-temperate regions of the
Himalayan hillsUP, Himachal Pradesh,Punjab, and Bihar.
>India cultivates about eight species of mentha; out of which three
species are exported. At present, India produces about 32,000 MT and
exports 6,000 MT of mentha oil. India exports different types of mint oil to
countries including Argentina, Brazil, France, Germany, Japan, and the UK.
Export varietiesinclude the Japanese mint oil (derived from Mentha
arvensis), peppermint oil (Mentha pipertia), dementholized Japanese mint
oil, spearmint (Mentha spicata), water mint oil (Mentha aquatic),
horsemint oil (Mentha sylvestries), Bergemont oil (Mentha citrate), etc.

DEMANDANDSUPPLY
>MenthaoilcropsowingseasonstartsduringFebruaryMarcheveryyear.Thecroptakes90
daystomature(vegetative)andproducesfirstflowers.Thisisthebeststagetoharvest.The
cropharvestingisdoneduringMay&June.
>Menthaleafisacommercialpartoftheplantincludingyoungflowerbuds,whichcontain
volatilementhaoil.Itsleavesaresundriedforhigheroilyields.
>Leavesandfloweringtopsgivethehighestyield.Distillationofdriedleavesischeaperthan
thatoffreshleaves.
>Bysteamdistillationandfiltration,agoldenyellowvolatileoilisobtained.Mentholflakes
canbeseparatedinacrystallineformoncoolingtheoil.Theremaining(dementholized)oil
isusedinconfectioneriesandflavoring.
>Themanufactureofmentholflakesformdementholizedoilhasbeentakenupona
commercialbasisbyafewfirmsinDelhi,Mumbai,andGujarat.Thereareseveralsmall
distilleriesinUPengagedinproductionofmentholflakesanddementholizedoil.
>MajormenthaoilmarketsinUPareChandausi,Sambhal,andBarabanki.Distilledmentha
oilisbroughtintothespecificmarketbyfarmersandproducerstocommissionagents.Asper
requirements,menthaprocessors,crystalmanufacturers,andexporterspurchasetheoilfrom
market.
>About350400drums(1drum=180kg)arriveintomarketsduringJuneNovember,and
thearrivalsdeclineintheoffseason.

FACTORSINFLUENCINGTHEMARKET
>AnincreaseordecreaseinthementhacropacreagedependsontheclimateduringMarch,
April,andMay.
>Thecropdevelopmentisbasedontheweatherprogress,particularlycoldwaveandheavy
rainsduringleafformation,inkeygrowingregions.
>Thewinterseasonisthepeakdemandperiodforcrystals,whichisusedinthepreparationof
commoncoldandcoughrelatedmedicines.
>MenthaoilpricetendstofirmupduringNovemberDecemberandeasesdownduringthe
harvestingperiodinMayJuly.
>Menthaoilstoragestocksinwarehouses,carryforwardstocks,andstocksavailablewith
farmersarekeyfiguresasfarassupplylevelsareconcerned.
>Menthaoilexporters,processors,andtradersstockthecommodityintheharvestingseason
beforesellinginexpectationofbetterprices.Stockiestprovideliquidityinthephysical
markets.
>Menthaoilfuturescontracthasbeenutilizedasthebestpricediscoveryonanelectronic
platformandhedginginstrumentfromvolatilephysicalmarketprices.

Symbol:MENTHAOIL
Description:MENTHAOILMMMYY
Tradingunit:360kg(2drums)
Quotation/Basevalue:1kg
Maximumordersize:18000kg(100drums)
Ticksize(minimumpricemovement):10paise
Dailypricelimits:Thebasepricelimitwillbe3%.Wheneverthebasedailyprice
limitisbreached,therelaxationwillbeallowedupto4%withacoolingoffperiodof
15minutes
MaximumallowableopenpositionForindividualclients:300MTForamember
collectivelyforallclients:1500MTor15%ofthemarketwideopenposition,
whicheverishigher.
Deliveryunit:720kg/4drums(withatolerancelimitof1kgperdrum)anddirect
multiplesthereof,thoughhewillgetthevalueonlyforactuallyquantitydeliveredby
him.Deliveryperiodmargin25%