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Complete Guide to Mentha Oil Rate and Market Trends in India – 2025 Edition
Mentha oil, primarily extracted from Mentha Arvensis, is one of India’s most valuable agro-commodities. It plays a critical role in the livelihoods of thousands of farmers and contributes significantly to global essential oil exports. This article presents a detailed guide covering mentha oil rates, mandi prices, MCX futures, GST updates, cultivation practices, export trends, industry usage, and future outlook for 2025 and beyond. It is designed to help farmers, traders, investors, and industry professionals make informed decisions.
What is Mentha Oil?
Mentha oil, also known as mint oil, is obtained by steam distillation of mint plants. India is the largest producer of natural mentha oil, with major cultivation in Uttar Pradesh, particularly in Barabanki, Amroha, Sambhal, and Rampur districts. The oil is highly valued in pharmaceuticals, cosmetics, confectionery, oral care, and flavoring industries due to its cooling menthol aroma.
Visual Insights: Mentha Oil Price Trends & GST Impact
GST Comparison on Mentha Oil
Before GST Change
12%
After GST Change
5%
Reduction in GST lowers costs for buyers, increases demand, and may support mandi prices.
GST HSN Code and Export Quantity of Mentha Oil
GST HSN Code for Mentha Oil
Mentha oil is classified under the HSN Code 3301 and attracts a 5% GST rate as per 2025 revisions. This includes:
- Mentha oil (Mentha Arvensis, peppermint, spearmint)
- De-mentholized mentha oil
- Natural menthol
- Used in pharmaceuticals, food, cosmetics, oral care, and flavoring industries
Impact of GST Change: Previously, mentha oil attracted 12% GST. Reduction to 5% lowers costs for buyers, encourages higher consumption, and supports mandi prices.
Example Calculation:
| Particulars | Before GST (12%) | After GST (5%) |
|---|---|---|
| Base Price (₹/kg) | 1,000 | 1,000 |
| GST Amount (₹/kg) | 120 | 50 |
| Total Price (₹/kg) | 1,120 | 1,050 |
Reduction in GST leads to a savings of ₹70/kg for buyers, making bulk purchases more attractive and boosting demand in industries like pharmaceuticals, cosmetics, and confectionery.
Export Quantity of Mentha Oil from India
India is the world’s largest exporter of mentha oil. Approximate export quantities in recent years are:
| Year | Export Quantity (Tonnes) | Major Export Destinations |
|---|---|---|
| 2020 | 20,000 | USA, Europe, Japan |
| 2021 | 22,500 | USA, Europe, Middle East |
| 2022 | 23,000 | USA, Japan, Europe |
| 2023 | 24,000 | USA, Europe, Japan |
| 2024 | 25,000 | USA, Europe, Middle East |
| 2025* | 26,000 (Estimated) | USA, Europe, Japan |
Export quantities are rising steadily due to the increasing global demand for high-quality, natural mentha oil used in pharmaceutical, cosmetic, and confectionery industries.
Importance of Tracking Mentha Oil Rates
Monitoring mentha oil rates is crucial for multiple stakeholders:
- Farmers: Decide optimal harvest and sale time.
- Traders: Negotiate better in mandis and futures markets.
- Exporters: Plan bids and manage supply chain costs efficiently.
- Industries: Forecast raw material procurement and pricing strategies.
Current Market Overview: Mentha Oil Rate Today
- MCX Futures: ₹970 – ₹990/kg (2025), reflecting supply concerns and rising export demand.
- Mandi Prices: Regional prices average ₹960 – ₹985/kg, varying daily with arrivals and local demand.
- Historical Highs: ₹1800/kg in 2018 due to limited supply and strong global demand.
Regional Mandi Price Analysis
| Region/Mandi | Price Range (₹/kg) | Notes |
|---|---|---|
| Barabanki | 970 – 985 | Largest production hub with steady supplies |
| Amroha | 960 – 980 | Known for high-quality oil and market stability |
| Sambhal | 955 – 975 | Prices vary with crop yield and local demand |
| Rampur | 950 – 970 | Slightly lower prices due to smaller market size |
| Lucknow (Wholesale) | 1050 – 1150 | Higher due to retail demand and wholesaler markup |
Insights from MCX Futures Market
MCX provides a transparent trading platform for mentha oil futures. Key highlights:
- Contract Cycles: Monthly contracts help in price discovery and risk hedging.
- Open Interest & Volume: High open interest indicates strong market participation.
- Price Volatility: Futures surged 25% in August 2025 due to flood-related crop damage and export demand.
Factors Affecting Mentha Oil Prices
- Weather and Crop Yield: Droughts, floods, or heatwaves directly affect oil supply.
- Domestic Demand: FMCG, pharmaceutical, and cosmetic industries influence consumption.
- Government Policies: Subsidies, MSP, and export incentives shape farmers’ planting decisions.
- Seasonal Trends: Demand peaks in summer and festivals.
- International Trade: USA, Europe, and Japan are key buyers.
- Currency Fluctuations: Exchange rates impact export profitability.
Historical Price Trends
- 2018: Peak at ₹1800/kg due to global demand and low supply.
- 2020: Pandemic slowed demand; prices dropped to ₹950–1000/kg.
- 2022–2023: Stability observed with balanced supply and demand.
- 2025: Recovery due to export demand and GST changes.
Latest GST Change and Its Impact on Mentha Oil
The Government of India rationalized GST slabs effective 22 September 2025, merging most rates into 5% and 18%, with 40% for luxury/sin goods. Mentha oil, menthol crystals, peppermint oil, and de-mentholized oil are categorized as “natural menthol goods”. This could reduce tax compared to the previous 12% slab, making mentha oil more affordable for industries.
Example: GST Impact on Mentha Oil Pricing
| Particulars | Before GST (12%) | After GST (5%) |
|---|---|---|
| Base Price (per kg) | ₹1,000 | ₹1,000 |
| GST Amount | ₹120 | ₹50 |
| Total Price to Buyer | ₹1,120 | ₹1,050 |
Result: Buyers save ₹70/kg, which is substantial for bulk purchases. Cost savings may boost demand, indirectly supporting mandi prices and benefiting farmers.
Mentha Oil Cultivation & Production
Mentha is a short-duration crop, typically harvested 90–100 days after planting. Key points:
- Soil Preference: Loamy, well-drained, slightly alkaline soils.
- Irrigation: Regular irrigation ensures higher oil content.
- Harvesting: Leaves and stems are harvested before flowering for maximum menthol content.
- Processing: Steam distillation is used to extract oil, quality depends on freshness and distillation process.
Industry Usage & Applications
Mentha oil is widely used in:
- Pharmaceuticals: Cough syrups, ointments, inhalers.
- Cosmetics: Soaps, creams, perfumes.
- Food & Beverage: Chewing gums, candies, flavoring agents.
- Oral Care: Toothpaste, mouthwash, dental gels.
- Aromatherapy: Relaxation, stress relief, spa products.
Export Trends
India exports over 80% of its mentha oil production, with major markets including the USA, Europe, Japan, and the Middle East. Demand for natural, high-menthol oil has increased globally, driven by the rising preference for herbal and organic products. Exporters benefit from a strong rupee-dollar exchange rate and competitive pricing. Key export highlights include:
- USA: Largest importer of Indian mentha oil, mainly for pharmaceutical and confectionery industries.
- Europe: Increasing demand for organic and natural aromatherapy products.
- Japan: Uses mentha oil extensively in cosmetics and food flavoring.
- Middle East: Growing demand for high-quality menthol and essential oils.
Farmer Challenges & Government Support
Mentha farmers face multiple challenges:
- Price volatility in mandi and futures markets.
- Adverse weather affecting yields and oil quality.
- High input costs for fertilizers, pesticides, and irrigation.
Government support schemes include:
- Subsidies: Financial aid for organic cultivation and drip irrigation systems.
- Minimum Support Price (MSP): Protection against distress selling.
- Export Incentives: Duty exemptions and financial aid for quality certification.
- Training & Extension Services: Guidance on best cultivation and distillation practices.
Seasonal Trends & Price Patterns
Mentha oil prices are influenced by seasonal factors:
- Summer & Festival Seasons: Higher domestic consumption drives prices up.
- Monsoon Season: Heavy rains may damage crops, reducing supply and pushing prices higher.
- Winter Season: Typically sees lower demand, leading to slightly reduced prices.
Future Outlook for 2025 and Beyond
Analysts predict a cautiously optimistic market for mentha oil in India:
- Growing global demand for organic and high-menthol oil.
- Positive effect of reduced GST on industry demand.
- Potential climate-related supply constraints may keep prices stable or slightly higher.
- Emerging niche markets in herbal medicines, aromatherapy, and wellness products.
However, risks include currency volatility, overproduction during bumper harvests, and sudden changes in export regulations.
Recommendations for Farmers and Traders
- Monitor mandi prices regularly and choose optimal timing for sales.
- Adopt proper storage and processing techniques to maintain oil quality.
- Consider forming cooperatives or farmer-producer organizations for better market access.
- Use MCX futures contracts to hedge against price fluctuations.
- Shift gradually to organic mentha cultivation to tap premium international markets.
Frequently Asked Questions (FAQs)
1. What is the current average price of mentha oil in Indian mandis?
As of 2025, mandi prices range between ₹960–₹985/kg depending on the region, crop quality, and demand.
2. Which regions are the largest producers of mentha oil in India?
Major production hubs are Barabanki, Amroha, Sambhal, Rampur, and surrounding districts in Uttar Pradesh.
3. How does MCX futures trading work for mentha oil?
MCX allows traders to buy and sell mentha oil contracts for future delivery, providing price discovery and risk management options.
4. How does the GST change affect mentha oil prices?
The revised GST (5% on mentha oil products) reduces costs for buyers, potentially boosting demand and supporting mandi prices.
5. What factors influence mentha oil prices?
Weather, crop yield, domestic and international demand, government policies, seasonal trends, and currency rates are key factors.
6. What is the global demand trend for mentha oil?
Demand is rising globally, especially for natural, organic, and high-menthol oils in pharmaceuticals, cosmetics, and food industries.
7. Can farmers benefit from exports?
Yes, export demand supports mandi prices and can provide higher returns for farmers with quality oil.
8. What are the challenges for mentha farmers?
Price volatility, climate risks, input costs, and market uncertainties are major challenges.
9. How can farmers mitigate risks?
Joining cooperatives, using futures contracts, practicing quality cultivation, and keeping track of market trends can reduce risk.
10. What are the key industries using mentha oil?
Pharmaceuticals, cosmetics, confectionery, oral care, aromatherapy, and food & beverage industries are the main consumers.
11. Are there government schemes to support mentha farmers?
Yes, subsidies for irrigation, MSP, export incentives, and training programs are available.
12. Is India the largest exporter of mentha oil?
Yes, India dominates the global mentha oil market, exporting over 80% of its production, especially to the USA, Europe, and Japan.
Conclusion
Mentha oil remains a crucial agricultural commodity for India, offering both opportunities and challenges. Prices are influenced by weather, domestic and international demand, market trends, and GST policies. Farmers, traders, and exporters who stay informed, adopt quality practices, and leverage market tools such as MCX futures can maximize profits. With the new GST reforms and growing global demand, 2025 promises a positive outlook, albeit with caution regarding climate and market volatility.
Live MCX Mentha Oil Price
As of , the MCX Mentha Oil price is ₹Loading… (Loading…).
For real-time updates, visit: Moneycontrol MCX Mentha Oil