BRIEF REPORT ON MENTHA OIL

General Characteristics
™ Mentha oil is obtained by steam distillation of Mentha
arvensis leaves.

™ Mentha oil and its constituents and derivatives are

used in food, pharmaceutical and perfumery and
flavouring industry.

™ Menthol is the main constituent of mentha oil and slow

cooling through refrigeration, crystallization,
centrifugation and drying is done to obtain it. It is used
in the manufacture of lozenges, toothpastes, pain
balms, cold balms etc.

™ Mentha is widely cultivated in India and its leaves are used in making sauces/chatni in most
households.

Supply Demand Scenario

™ India is the largest producer and exporter of menthe oil in the world. At present the major
producers of mint oil in the world are India, China, Brazil and the US.

™ Mentha arvensis is cultivated in India in the semi- temperate regions in the foothills of Himalayas
in Punjab, Haryana, Himachal Pradesh, Uttar Pradesh and Bihar. The all-India area under
mentha in the country is estimated at about 1,25,000 hectares.

Tuesday, April 17, 2007

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
 ™ India exports different types of mint oils to a number of countries including Argentina, Brazil,
France, Germany, Japan, UK, USA, etc. these varieties include the Japanese mint oil (derived
from Mentha Arvensis), peppermint oil (Mentha Piperita), dementholised Japanese mint oil, spear
mint oil (Mentha Spicata), water mint oil (Mentha Aquatic), horsemint oil (Mentha Sylvestries),
Bergamont oil (Mentha Citrate) and still others.

™ India cultivates about eight species of mentha however three species are approved / recognized
by the purpose of quality standards and international marketing.

™ The natural oil yields on an average 40-50% menthol and 50-60% dementholised oil, which can
be used both in confectionery and medicine in place of imported peppermint oil. Japanese mint oil
is not distinguished from the peppermint oil in the Indian trade.

Menthol Production in India

™ The cultivation of Mentha Arvensis in India is a dramatic
& very successful story. Before, 1964, there was no
production of Mentha Oil & Menthol in India. The
cultivation of Mentha Arvensis was started around 1870
in Japan so it is also called Japani Mint than extant in
Brazil, China and Formosa etc. Col. Mr. R.N. Chopra &
Dr. I.N. Chopra of Regional Reserch Laboratory Jammu
Tawi first brought Mentha Arvensis in 1964 and with the
best efforts of Mr. S.C. Bante Managing Director
Hindustan Richardson Ltd (VICKs), the commercial cultivation could be started in India.

™ The survey conducted by Richardson Hindustan Ltd. determined that Tarai Area of Uttar-Pradesh
would be a suitable place for the cultivation of Mentha Arvensis so a land of 15 Hectares was
purchased to setup an Agriculture Research center for Mentha. The crop of mentha successfully
grown and when the mentha oil was extracted by Steam distillation, mentha crop became a

Tuesday, April 17, 2007

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
 viable. Hindustan Richardson Ltd. established a distillation unit in BILASPUR of district Nanital so
confidently the Farmer could grow Mentha Herb. They had supplied the planting materials as well
as given technical knowledge to grow the Mentha herb. As the result the area of mentha crops
substantially increased in entire tarai and western districts of U. P. mainly Nanital, Rampur,
Moradabad, Badaun, Bareilly and recently extended to eastern districts viz. Barabanki, Lucknow
& sitapur districts. 80% crop of India, grown in Ut tar Pradesh, rest 20% in Punjab, Haryana. In
these two years crop of Mentha Herb developed MP & Gujrat but in little quantity.

™ With the best efforts of Farmers Small Scale Industries and CSSIR laboratories RRL Jammu,
CIMAP Lucknow, India is one of the largest producer of Menthol & Mint allied products in world
now second one is China. Presently 85% production of Mint products is in India, rest in China,
Brazil & other small countries.

Crop Combination for Higher Profitability

Maize Potato Mentha

Paddy Potato Mentha

Basil Potato Mentha

Paddy Lahi Mentha

Paddy Wheat Mentha

Tuesday, April 17, 2007

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Seasonality

Time of Plantation Time of Plantation No. of Oil Yield Per Acre

(Crop) Harvest

Mentha Arvensis January 2nd wek to Feb. Last 2 60kgs to 90kgs

Mentha Piperita Dec. Last week to Jan. Last 2 40kgs to 60kgs

Mentha Spearmit Dec. Last week to Jan. Last 2 40kgs to 65kgs

Year wise cultivation & production of

Mentha Oil

Year Area Heqtor Production of

Mentha Oil

1965 65-70 2

1970 600-650 46

1975 4000-4500 260

1980 8000 500

1981 10000 800

1985 18000 1400

1988 25000 2200

1990 35000 5000

1992 38000 5400

1995 45000 7000

Tuesday, April 17, 2007

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
 1996 35000 5500

1997 55000 11000

1999 62000 12000

2001 65000 13000

2003 72000 15000

2004 70000 14000

2005 - 18000-20000*

*- Industry Projections

Present Demand

Domestic (India) 4000-4500 MT.

Export (Overseas) 7500-8000 MT.

Exports
™ At present the major producers of mint oil in the world are India, China, Brazil and the US.

™ India exports different types of mint oils to a number of countries including Argentina, Brazil,
France, Germany, Japan, UK, USA, etc. these varieties include the Japanese mint oil (derived
from Mentha Arvensis), peppermint oil (Mentha Piperita), dementholised Japanese mint oil, spear
mint oil (Mentha Spicata), water mint oil (Mentha Aquatic), horsemint oil (Mentha Sylvestries),
Bergamont oil (Mentha Citrate) and still others.

™ Mentha Oil export has steadily increased from India in the recent years. In the year 2004-05 India
impressively exported 9160 MT.

Tuesday, April 17, 2007

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
 ™ Although domestic demand for this product has increased on the wake of higher activity by
domestic cosmetic and perfume industry.

™ Present domestic demand for menthe in domestic market is estimated to be 4000 MT to 4500
MT.

Global Price
™ The price trend of menthol is directed by the status of production in India and China that
predominantly depend on the weather conditions. Any irregularity in the weather condition can
wither the output and hence could place the commodity on higher quotes.

™ China is good consumer of Indian menthol. Current crop year, in the international market menthol
price remained in the range of $16-$21, depending upon the supply scenario.

Current Scenario
™ The country is set to see a bumper crop of mentha this year on the back of higher acreage. The
output may jump by over 150 per cent compared with the last year’s figures of 18,000-20,000
tonne.

™ Mentha oil is an export oriented commodity, recent strengthening of INR Vs Dollar will
further lead to bearish sentiments. Indian rupee has appreciated by 6.8% from March
making the export parity down.

™ Traders are expecting an overall output of 30,000 - 35,000 tonne, which will start hitting the
market by the end of May.

™ The consumption of mentha oil in the country is around 9000-10,000 tonne per annum. The
country already has a carry forward stock of over 3,500 tonne.

Tuesday, April 17, 2007

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
™ The increased acreage is because of the farmers’ inclination towards mentha production as the
crop fetched them better realisation last season. Inter-cropping led to higher plantation. In
between potato crop, mentha crop has been sown this time.
™ The rains in January and February in the northern part of the country also proved beneficial for
the crop since it requires a good amount of water at its initial stage. The weather condition has
been subsequently warming up to the optimum level, which is what the crop needs at this stage.

™ The yield too is on the upside. An average yield of 80-90 kg per hectare against 50-70 kg per
hectare last year is expected.

™ Though the exact acreage is not known so far, in Uttar Pradesh alone (the largest producer of
mentha oil), the minimum acreage is 1,25,000 hectares and this can even go up to 1,50,000
hectares.

™ Across the country, the acreage is expected to reach 2,25,000 hectare. Haryana, Punjab and
Himachal Pradesh are the other mentha-producing states.

™ The envisaged situation of plenty could well trigger a fall in the price of mentha oil. However, any
such possibility may be offset by stockists or farmers opting to stock the commodity themselves,
according to analysts. Mentha oil can easily be stored for as long as 7-10 years.

™ With new mentha crushing and processing plants coming up in Jammu and Kashmir and even in
Himachal Pradesh, the processing of excessive production may not be difficult, said market
players.

™ The available stocks of mentha in the warehouses of the commodity exchanges amount to
around 500 tonne at present. October-December is the period when export of mentha oil reaches
its peak.

Tuesday, April 17, 2007

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
 ™ After meeting the domestic and export demand, the country would be left with a carryforward
stock of at least 6,000 tonne.

Technical outlook

SELL MCX MENTHA MAY IN THE RANGE OF 575-585 RANGE FOR TARGET OF 546, 526 WITH A
STOP LOSS OF 597
OR
SELL MCX MENTHA MAY BELOW 564 FOR TARGET OF 540, 526, WITH A STOP LOSS OF 586.50

Tuesday, April 17, 2007

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Ventura Commodities Pvt. Ltd.
Registered Office: Dhannur “E”, 15, Sir P.M. Road, Mumbai – 400 001; +91 22 2266 0969.

This report is neither an offer nor a solicitation to purchase or sell commodities. The information and views expressed herein are believed to be
reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in or have positions in the
commodities mentioned in their articles. Neither Ventura Commodities Pvt. Limited nor any of the contributors accepts any liability arising out of the
above information/articles. Reproduction in whole or in part without written permission is prohibited. This report is for private contribution.

Tuesday, April 17, 2007

This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.