Mentha oil on MCX settled up by 0.2% at 856.1 amid rising demand from consuming industries at the spot market. Further, tight stocks position on account of restricted supplies from major producing regions of Chandausi in Uttar Pradesh also supported mentha oil prices. Support also seen after the report that Global demand for flavours and fragrances (F&F) - flavour blends, fragrance blends, essential oils & natural extracts, and aroma chemicals - is forecast to grow 3.9 percent per year, reaching $ 26.3 billion in 2020 from $ 21.70 billion in 2015, as per the Freedonia Group report.

Prices also seen supported in the anticipation that current year production can slip more that 35% due to lower plantings on falling prices in the last two years. As per market survey the total area under Mentha planting has dropped by 20% to 1.75 lakh ha this season resulting into a proportionate fall in Mentha oil production this year. Prices had significantly dropped since last 6months and prices traded in the range as demand from consuming industries is mute against steady arrival from spot market of Chandausi in Uttar Pradesh which is keeping prices within a range.

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