In our previous market reports (also available on our website https://www.prkchemicals.com/pkresearch.html ), we had summarized the Menthol industry during the periods. We would like to review the current market situation and brief about the current challenges of the industry.For the last couple of years, world has been facing Covid-19 pandemic. This pandemic effected, to the large extent, demand/supply situation, of Pan Masala, oral care, Mint flavours, pharmaceutical, cosmetics industry. In fact the world had learnt to live without most barring pharmaceuticals.

The pandemic started waning from 2022, therefore world in general and Mint in particular started recovering the lost ground. For last couple of years Indian mint industry was working purely on strict demand/supply mode. But this year the situation seems to change. Speculation could be the order of this year. Speculators have entered in strength and the news of less crop has already raised the sentiments. This is true that there is going to be a shortfall of 10% in Eastern UP but the alarming situation is in Western UP, where the shortfall is approx. 30%. The bulls are on rampaging

It has been seen in previous years that China is the major buyer of Menthol powder and they had been buying between USD 14.00-16.00 levels. They are still looking at the same levels. Unfortunately they are ignoring some very logical and pressing issues, like increase in production cost by way of higher fuel costs, higher costs of land maintenance, higher labour cost, as has been stipulated by Government and above all Governments focus to push the welfare and income of farmers to dizzying heights. Add effect of monsoon because of late cultivation because of long winters. This shall affect distillation and result in reduced returns to the farmers income and another reason Potato-Mustard crop late harvest. India can produce 45,000 MT to 50,000 MT of oil but aforesaid shall decrease it by a very fair percentage.