Mentha Oil Price in India, Factors Impacting and Benefits

The monsoon season in India plays an important role in the agricultural output of the mentha crops. Adequate rainfall during the monsoon is crucial for the growth of Mentha arvensis plants. Irregular or insufficient rainfall can disturb the crop production cycle, which leads to a supply shortage of mentha oil.

As Mentha oil is exported from India in heavy quantities, currency fluctuations can significantly impact its price. A weaker Indian rupee against the U.S dollar can make the Indian mentha oil market more competitive internationally, potentially increasing the demand as well as prices.

Supply and demand are the fundamental factors impacting the mentha oil prices. The higher the supply of mentha crops, the lower the price for mentha oil. However, at the time of a shortage in the supply of mentha due to low production, the price can rise due to high demand in global markets.

The global market trend can influence the price of mentha oil, due to changes in consumer preferences and emerging market trends. Any shift in the international demand patterns and production levels from other countries can have a ripple effect in the domestic price of mentha oil.

Any change in the import-export regulations, taxation, or subsidies can directly impact the mentha oil price. The support from various government policies gives a push to the demand, which can positively impact the price in domestic markets.

Mentha oil is a highly liquid commodity traded in the MCX exchange. It ensures traders can easily enter and exit positions. The high trading volume offers sufficient liquidity and reduces the risk of slippage.

Mentha oil price is positively correlated with inflation. It means that as the inflation rises, the price of mentha oil is expected to increase, providing a hedge against inflation.

Mentha oil futures contracts are a highly leveraged product. It helps traders to take advantage of price fluctuations by building positions with low margins.

Mentha oil futures contracts are volatile, which helps traders to capitalise on the short-term price movements. Any skilled trader can deploy various trading strategies and improve the probability of profit.

Due to high liquidity and volatility, algo trading can be easily done in mentha oil trading. Algo trading or automated trading uses a computer program to execute the trades without any human intervention. Algos can capture the price pattern and execute the trade based on predetermined criteria set by the trader themselves.