Mentha Arvensis Update
June 15, 2021
Covid-19 Impact
The lockdown announced in several states of India is expected to end soon with commercial activities resuming across the country. We may continue to face disruption and longer delivery times over the next 3-6 months as the Covid-19 situation is still unpredictable.
The shipping industry has been badly impacted by the pandemic. Ongoing issues include: increasing freight cost, container shortages, and delayed vessel schedules.
Current Situation
New Crop Trend
Due to the lock-down, the crop is expected to be roughly the same as last year. Harvesting has slowed but should be in full swing by mid-June. Production is expected to be 52,000-55,500MT, with the average yield remaining moderate across all crop locations. We expect a normal to high rainy season this year, but if heavy rain comes earlier than expected it may damage the crop.
2021 Estimated Crop Production (MT)
Production & Consumption of Mint Products (MT)
Price Trends
The spot market price for Mentha Oil has reduced from the month of May due to the arrival of new crops and the withdrawal of lock-down. MCX will be on a premium basis in the month of July and after the arrival of new crops, per speculations, the price would be moderate in the line of cost.
MCX Pricing Snapshot
MCX Price Development (December 2020 - June 2021)
Currency Trends
The INR has improved since last month due to the re-opening of regions and economic conditions. We expect the USD to trade between INR 72-74 over the next 4-6 months.
INR to USD Snapshot
Mentha Arvensis
The distillation of Mentha Arvensis will begin the last week of June. The crop is decent, but results are determined by weather during the harvest. Its expected that total crop will be 10-15% extra in comparison to last year.
