Ajay Kedia, MD of brokerage Kedia Advisory, said buying at lower levels has pushed mentha oil prices higher. With the onset of the summer season, higher demand can be expected for the commodity going forward, he said.
Kedia recommends buying mentha oil around Rs 950 for a target of Rs 965 by the end of this week with a stop loss at Rs 940.
Mentha oil is used by industries such as pharmaceuticals and FMCG for manufacturing soaps, sanitizers and cough syrups. It is also used heavily in the pan masala business. Besides, mentha also commands high demand in the production of cosmetics and confectionery goods.
India is the world’s largest producer and exporter of mentha oil, with the maximum production from Uttar Pradesh.