InvestorQ : How have the prices of Mentha Oil behaved in the past?
Aastha Awasthi made post

How have the prices of Mentha Oil behaved in the past?

swati Bakhda answered.
3 years ago

Most prices of mentha oil are approximations at a point of time and are subject to constant change. These prices are only broadly indicative of the opportunity to hedge mentha oil risk or to even trade in the same. The mentha oil prices went up by over 25% between 2015 and 2017. Typically about 40,000 MT of mentha oil comes into the market each year between the months of June and November, which is the peak season. After November, the supply of mentha oil declines till the next mentha oil season begins. Hence the price volatility in mentha oil is normally caused by demand and supply disruptions around these critical pivot points. Since India is one of the principal producers of mentha oil and the demand for mentha oil exists worldwide, India has become one of the major export hubs of mentha oil. Thus any spurt in global demand for mentha oil results in price volatility. For exporters, the agri futures on mentha oil offer a good platform to hedge their price volatility risk.