6/15/2015

1

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Mentha Oil

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Introduction: • Japanese mint – Cornmint Oil – Mentha arvensis Other Varieties – Peppermint Oil – Mentha piperita – Spearmint Oil – Mentha spicata • Use: Food Flavoring (Chewing Gum & Mouth Freshener), Cosmetics, Pharma, Candies, lozenges, cough syrup,etc. • In 1964, commercial production of Mentha oil in India • India - world’s largest producer & exporter of Mentha oil • Major Producing Countries – China, Brazil, Japan & Argentina www.mcxindia.com

Mentha: Perennial Crop • Sowing: March - April end • 14 – 20 times irrigation required • Harvesting: May end – July end

• Harvesting Stage: @ First flowering (twice) • First cutting @ 120 DAS & second cutting after 90 days

• Within 24 hours of harvesting, oil has to be extracted • Within 7 days of harvesting Mentha Oil arrivals start in the market www.mcxindia.com

Production Process: Flow Chart Fresh or Semi dried Herbs

Distillation Mentha Oil Crystallization (Menthol Flakes) Centrifugation Wastages

Mentha Crystal

De Mentholated oil www.mcxindia.com

Value Chain Farmer

Exports

Flavourings

Cosmetics Distiller Crystallization unit Broker

Main Trader

Pharmaceuticals Food

Corporate Buyers

Personal Hygiene

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Global Production • • • •

India China Brazil Japan

Figure 3: Countrywise Share in Total Production

Others 7% China 18% India China Others India 75%

Source: Trade estimates

Source: intracen.org

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Global Consumption Consumption Pattern (in Percentage) Other 10% USA 15%

Germany & Netherlands 15%

India 40%

China 20%

Source: intracen.org

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India: Area, Production & Exports

Year

Area (in ‘000 hectares)*

Production ( in MT )#

Exports of Mentha Oil and Allied Products ( in MT )

2004-05

90

11,000

9,000

2005-06

169

22,000

14,000

2006-07

173

25,000

17,500

2007-08

260

32,000

20,000

2008-09

261

32,000

18,000

2009-10

310

19,000

2010-11

198

35,000 28,000

2011-12

304

36,000

14,750

2012-13

240

40,000

2013-14

315

42,000

24,500

2014-15#

294

38,000

25,000

2015-16

163

25,000

21,700+

17,450 *Source: Trade Estimates

20,039

Source: *FICCI, NHB # Trade Estimates Spice Board of India (+ As on Dec’ 14) www.mcxindia.com

Mentha Oil: India’s Production & Exports Mentha Oil : Production & Exports 45,000

350

40,000

300

35,000 250

25,000

200

20,000

150

in '000 Hectares

in MT

30,000

15,000 100 10,000 50

5,000 0

0 2004-05

2005-06 2006-07 Production

2007-08

2008-09

2009-10 2010-11 Mentha Oil Exports

2011-12

2012-13

2013-14 Area

2014-15

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Trade: Exports from India Qty in MT; Value in Rs. Lakhs

Country wise Mentha Oil Export from India COUNTRY CHINA U.S.A SINGAPORE NETHERLANDS GERMANY U.K FRANCE BRAZIL HONGKONG JAPAN PHILLIPINES NIGERIA INDONESIA SPAIN BELGIUM PARAGUAY VIETNAM POLAND OTHERS

2009-10 Quantity Value

2010-11 Quantity Value

2011-12 Quantity Value

2012-13 Quantity Value

6520.4 3488.4 1875.1 562.9 1116.0 631.4 428.2 760.8 417.1 522.7 56.7 133.4 93.5 174.6 338.1 528.7 144.7 171.3

37404.7 25636.6 10505.3 4228.0 7522.3 4317.9 3067.0 4278.0 1944.0 2951.2 404.3 911.5 568.4 1073.1 2264.3 2979.6 953.1 1167.0

5473.4 3445.8 1414.3 501.3 1249.4 606.1 247.8 579.0 360.7 482.0 99.6 94.2 78.7 133.4 171.7 206.5 126.2 170.5

54559.3 31444.0 13695.1 5265.6 12078.2 6167.3 2218.1 5553.3 3919.0 5421.5 1237.9 1149.3 852.2 1359.8 1639.2 1798.7 1390.6 1317.9

4989.9 3198.6 1418.4 951.9 910.1 462.8 153.5 398.5 187.5 469.9 131.4 52.5 16.4 105.9 196.3 267.0 39.9 0.9

70176.8 52416.2 19498.3 16091.2 14210.7 7109.4 2321.9 5880.4 3147.3 7107.6 2156.4 741.3 240.4 1695.0 2792.1 3710.1 605.1 19.1

9525.5 3695.0 1446.2 795.9 795.2 531.7 459.3 355.4 185.5 176.2 169.2 181.4 154.2 133.9 111.5 82.2 71.2 63.3

170298.2 78918.7 29235.3 19934.1 15209.1 10955.2 9707.8 8409.2 4137.4 3967.0 3561.5 3541.1

1036.2 19000.1 TOTAL Source: Spice Board of India

6795.9 118972.0

2009.6 17450.1

18612.2 169679.0

798.8 14749.9

12452.7 222372.0

1106.5 20039.2

24097.8 394049.5

3089.9 2407.3 2308.3 1598.3 1424.8 1248.6

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Production: Indian scenario Production Areas 80% of India production is from Uttar Pradesh Rampur Moradabad Badaun Bareilly Barabanki Lucknow & Sitapur districts

20% in Punjab, Haryana and Himachal Pradesh www.mcxindia.com

Contract highlights • • • • • • • •

Trading Unit : 360 KG. (2 drums) Delivery Unit : 360 KG. (2 drums) Price Quote: Per KG. Tick Size : 10 paise. ( Rs.360.00 on Rs.1.00 Price movement) Contract Start Day: 1st day of the contract launch day Delivery Center: Chandausi & Barabanki (At Rs.2.00 per Kg Discount) Compulsory delivery Longer shelf life. Quality certificate issued for 12 Months, Total validity 12+6 Months. Member Client • Position Limit: Overall

Near Month

Overall

Near Month

In MT

3600

1800

360

180

In Lots

10000

5000

1000

500

In MT*

5000

2500

500

250

In Lots*

13889

6944

1389

694

*OI from 1 July’2015

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Specifications • Drum Specification: New galvanized Iron Container weighing 21 Kg • Drum Charges: Rs. 2050 per drum • Quality testing: Rs. 4690+Service tax (12.36%) per sample lot of 12 drums

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Quality Specification • • • • •

Appearance: Liquid Odour: Strong minty with Herbal Colour: Light/ Pale Yellow Solubility: Soluble (1:4 to 6 in 70% alcohol) Liquid Mentha Oil having L – Menthol 68% as per GLC test – packed column ( Assay by GLC) – Above 68% Premium of 1:1 – Between 63% - 68% Discount 1:1 – Below 63% Rejected • Terpene  Basis 7.5%  Between 7.5% - 9% Discount 1:1  Above 9% Rejected • Methyl Acetate 6.5% ( max. upto 6% w.o. discount) 6 to 6.5% with 1:1 dicount www.mcxindia.com

Mentha Oil : Stocks and Delivery 1097 964.4 1037 971.8

769.4

0

Stocks in MT

Apr-15

0 Feb-15

777.7

200

1000 Dec-14

798.6

400

2000

Oct-14

901.5

600

3000

Aug-14

952.3

800

4000

Jun-14

985.3

5000

Apr-14

899.3

1000

Feb-14

938.4

6000

Dec-13

942.6

Oct-13

970.5

Delivery in MT

Mentha Stocks n Delivery

941

Aug-13

630,662 1,937,849 2,748,659 2,634,268 2,595,396 2,594,711 2,483,157 2,241,678 1,899,419 1,406,674 1,186,743 1,043,874 1,722,251 3,966,477

DDR

Jun-13

Stocks (Kg)

Apr-13

Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15

Delivery Delivery Volume (Kg) Default (Kg) 386,280 135,000 360 239,040 187,560 196,560 19,440 287,640 380,880 1,080 318,240 360 183,240 2,160 253,080 720 73,800 471,960 338,040 243,360 644,040 166,680 289,440 118,800 572,400 879,480 489,240 524,160 -

Stocks in MT

Month

Delivery in MT

750.6 767.8

4,869,265

780.5 836.9

3,725,999 3,235,505 2,858,733 2,546,639

857.4 863.2 923.6 1100.6

No. of warehouses: 9 Capacity @ Chandausi (2):1260 MT Barabanki (7):4320 MT Storage Charges: Rs. 0.05 per Kg per day Warehouse Provider: SLCM Testing Agency: FFDC, Kannauj

Source: MCX www.mcxindia.com

Factors affecting Mentha Oil Prices • International Factors – Import demand from major importing countries such as China, the U.S., and Singapore. – USD–INR rate, the commodity being exportoriented. – Price of synthetic mentha oil in international market.

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Domestic factors •

Production related – Mentha oil price is influenced by an increase or decrease in the mentha crop acreage which depends on the climate during sowing and the price realization in the previous season. – Prevailing weather conditions; the incidence of cold wave and heavy rains are harmful during leaf formation. – Quantum of arrivals during the harvest season.

•

Consumption – Domestic demand from pharmaceutical companies which usually increases in winter – Export demand from importing countries

•

Stocks – Mentha oil stocks in MCX-accredited warehouses, carry forward stocks, and stocks available with farmers are key indicators of supplies and influence prices. www.mcxindia.com

Price Trend

Mentha Price Trend 1200

1100

Price (Rs/Kg)

1000 900 800 700 600 500 400 1-Jan-14 1-Mar-14 1-May-14

1-Jul-14

1-Sep-14 1-Nov-14 1-Jan-15 1-Mar-15 1-May-15

Spot Price(Rs.)

Future Price

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Volatility Mentha Futures Price Volatility 3000

14.00%

12.00%

2500

10.00%

8.00% 1500 6.00%

Volatility

in Rs. per Kg

2000

1000 4.00%

500

2.00%

0

0.00%

Spot Price(Rs.)

Future Price

Volatility

Source: MCX www.mcxindia.com

Product Knowledge Management Team Multi Commodity Exchange of India Limited is proposing, subject to market conditions and other considerations, a public offer of equity shares by way of an offer for sale and has filed a Draft Red Herring Prospectus ("DRHP") with the SEBI. The DRHP is available on the websites of SEBI at www.sebi.gov.in and the book running lead managers at www.edelcap.com, http://www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm and www.morganstanley.com/indiaofferdocuments. Investors should note that investment in equity shares involves a high degree of risk and for details in relation to risk factors, please see the section titled "Risk Factors" in the DRHP. This advertisement may not be published or distributed in the U.S., Canada or Japan and is not an offer or solicitation of an offer for sale of securities in the U.S. These securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the U.S. absent registration or an exemption from registration under such act.

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