RECENT MARKET TRENDS OF MENTHOL CRSTALS IN INDIA

 RECENT MARKET TRENDS OF MENTHOL CRYSTALS IN INDIA

Menthol Crystal is a cyclic monoterpene that comes from mint leaves.

Mentha arvensis is the primary species of mint used to make natural menthol crystals. Menthol crystals can be used in tooth care products, tobacco, beverage, candy, perfume, and pharma industries, in which tooth care products consume around ¼ of the total quantity.

THE INDIAN PRODUCTION

In the last 20 years, India has overtaken China, Japan, Brazil, and South American countries, becoming the largest mint-growing country. India is also the number one natural menthol and feedstock supplier in the world, which supplies up to 80% of the world’s requests.

More than 70% of the Chinese-produced natural menthol crystals rely on Indian feedstock. Consequently, the world’s natural menthol supply very much depends on the weather condition and economic situation of India. It is not surprising that it is famously volatile.

MARKET TREND

In the past, we have seen the price of menthol going up to 4 times more during the shortage. India farmers have been working on improving plant quality and planting techniques to guarantee a stable mint supply.

Meanwhile, Menthol Crystals Exporters in India are engaged in synthetic menthol production, which partially released the market pressure of Indian natural menthol.

The price of natural menthol has remained between USD15-USD20 from 2019 until now. In the last 3 months, India’s mint oil market was relatively quiet, according to MCX information. The peak happened in January 2021 and the price of mint oil was over Rps 1025/kg, which was probably influenced by the end of a new crop distillation in a certain area. Nowadays it declined to Rps 950/kg.

In the next 2 months, most areas in India will have their harvest. In the meanwhile, at the beginning of this year the “Mint Manufacturers and Exporters Association” has been founded to deal with the frozen period of the market. In order to act wise, it would be crucial to keep on monitoring the market in the coming months.

Menthol        Producing      Countries
Japan is supposed to be the pioneer in its commercial production before the 1st World War and the species grown was ’Mentha Arvensis’. After the 2nd World War Japanese shifted their commercial cultivation and manufacturing to Brazil and South America. In Brazil Mint was growing at a very large scale and repeated harvest of the same crop was undertaken. This practice of repeated harvest of the crop gave an opportunity for to Brazil become one of the major sources of Menthol in the world market. Simultaneously China also recognized the commercial significance of the Menthol market and started its production under the State’s controlled arrangement’. Resultantly by the year 1960 China also became a new and major source of menthol for the world.
In the present scenario, India is the largest producer of Mentha oil followed by China. However, China is No.1 in Menthol Crystal production followed by India.

Domestic         Menthol          Production

In India, the first distillation plant was installed at Bilaspur by a US-based MNC in the year of 1973. Thereafter various local distilleries also came up at Sambhal, Chandausi, and Moradabad. The survey conducted by Richardson Hindustan Ltd. determined that the Tarai Area of Uttar‐Pradesh would be a suitable place for the cultivation of Mentha Arvensis. The crop of menthe was successfully grown and when the mentha oil was extracted by Steam distillation, the mentha crop became 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 the 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.

India up to 1966 was the importer of menthol which continued up to 1986 but due to Green Revolution, which started in the year 1965, plantation of the wonder crop was undertaken by the farmers of UP at Rampur which later on spread to various areas like Rudrapur, Bilaspur, Bareilly, Barabanki, etc. Some other areas like Sitapur, Faizabad, Gonda, and Baraich; these areas are counted within  Barabanki.

The true mints belong to the genus Mentha Piperita. The leaves and tops are sometimes dried and utilized for flavoring but its oil extracted is the main derivative having large commercial value.