What is Mentha Oil and How To Trade in Mentha Oil?

Published on January 06, 2026 | 4 min read

Leading tyre makers Apollo Tyres, Goodyear India, MRF and JK Tyre and Industries recovered up to 4% on Tuesday due to easing crude oil prices.

Mentha is an aromatic herb, which is also known as “Pudina” in India. Stream distillation and filtration of dried Mentha leaves produce mentha oil. It is extensively used in pharmaceuticals, cosmetics, foods, perfume, and the flavouring industry.

According to MCX exchange, by the year 1996, India was producing 6000 tonnes of mentha oil and become one of the significant producers. By 2013, oil production capacity had increased to 45000 tonnes, and become one of the largest exporters of mentha oil.

Due to its variety of uses, Mentha oil become an essential commodity, and its future contracts (derivatives) were introduced in the MCX exchange in 2004.

As of now, Mentha oil derivative futures contracts are traded in the Multi-Commodity Exchange in India (MCX) as a volatile commodity.

What is Mentha Oil Trading?

Mentha oil trading refers to the buying and selling of mentha oil future contracts to profit from the change in its prices. The price fluctuation depends on the supply and demand of mentha oil in the market.

In India, Mentha oil trading comes under the commodity segment, which is managed by the MCX exchange. Traders look for opportunities to take positions in mentha oil future contracts according to their predictions and analyses. If the mentha oil prices rise, the buyers get the benefit, and if the price falls, the sellers get the benefit.

Open FREE Demat Account within minutes!

Join now

Mentha Oil Trading: Contract Specifications (MCX)

Mentha oil trading can be rewarding if done in the correct way. Here are the details of mentha oil future contracts traded on the MCX exchange.

The lot size set by the exchange is 360 kg per lot, which means one lot of future contracts represents 360 kilograms of mentha oil.
The price is quoted in Indian Rupee (₹) terms. The tick size is ₹0.10 per kg.
Futures contracts of mentha oil expire on the last trading day of the month.
Margin requirements are not fixed, around 10% to 13% margin is required in the total contract value.
Suppose, if the metha oil price is ₹1000 per kg, then it should be 360 (lot size) x ₹1000 (price) = ₹3,60,000. Margin required to trade1 lot of mentha oil is 13% of ₹ 3,60,000, which is ₹46,800.

Factors Affecting Mentha Oil Price In India

Mentha oil prices fluctuate daily based on the tussle between bulls and bears. However, there are various other factors which affect the mentha oil price in India.

Weather Conditions

Abnormal weather conditions can impact the production of mint, which can disturb the supply of mint herb, from which mentha oil is extracted. Any unusual changes in the supply of herbs can lead to a rise in the prices of mentha oil.

Demand from Industrial Use

Mentha oil is an essential ingredient used in various industries like pharmaceuticals, cosmetics, food, etc. If the demand for mentha oil-based medicine or cosmetics rises, it is likely to favourably impact mentha oil prices.

Currency Exchange Rates

Due to the international trade of mentha oil, changes in exchange rates can impact the cost of import and export, which, in turn, affects domestic prices of mentha oil.

Seasonal Variations

Harvesting season, festival demand and consumer taste are some variables that cause the fluctuations in mentha oil prices.

Speculative Trading

The price of mentha oil may be impacted by the constant speculative trading activities in the commodity market. Sometimes, artificial demand is created by buying futures contracts, which leads sudden rise in prices for a short period of time.

How To Trade in Menta Oil in India?

Mentha oil trading requires a basic understanding of the commodities market and derivatives futures contracts. Any trader who has an active trading account can participate in mentha oil trading. Below are step-by-guide to trade in mentha oil futures contracts.

Open a demat and trading account with Upstox.com
Make sure to activate the commodity segment in your trading account.
Add funds from your bank account to your trading account.
Go to the search option, and type mentha oil futures. (You can choose the contracts of the current month or next month as per your preference)
Check the required margin and place a buy or sell order as per your analysis.

Mentha oil is a valuable commodity derived from the mint leaves, widely used in various industries such as pharmaceuticals, cosmetics, food, perfume, etc. Its demand is influenced by factors like the weather conditions, export trends, industrial consumption and more.

Traders looking to trade in mentha oil can bet using its futures contracts, and capitalise on the price fluctuations. Moreover, importers and exporters can also use mentha oil derivatives to hedge against changes in price and minimise the risk.

About Author

Subhasish Mandal

Sub-Editor

finance professional with strong expertise in stock market and personal finance writing, he excels at breaking down complex financial concepts into simple, actionable insights. Holding a Master’s degree in Commerce, he combines academic depth with practical knowledge of technical analysis and derivatives.

Read more from Subhasish

About Upstox

Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.