Mumbai - Mentha oil futures added around two per cent gains as traders and speculators continued buying heavily during early hours of trade on the Multi Commodity Exchange (MCX) Thursday. The futures have accumulated gains ranging between 12 and 15 per cent during last seven-eight days on reports that heavy rains in mentha-growing areas in Uttar Pradesh have damaged the standing crop.

Mentha oil trading resumed after remaining closed for several days at the main markets across Uttar Pradesh. Fresh arrivals of mentha oil in the physical markets is almost negligible amid heavy rainfall in the region. Though, harvesting is on and farmers are making and storing the oil in the fields itself.

There are reports of crop damage due to heavy rains at several places in the State. While official figure estimates the crop loss in the range of five to 10 per cent, traders peg the total loss at 15 to 40 per cent. Meanwhile, the apprehensions of crop loss are strengthening spot prices of mentha oil.

As on June 17, MCX-monitored warehouses were stacking up 145,735 kgs of mentha oil while demat stocks were recorded at 50,396 kg. NCDEX-accredited warehouses were having demat stock of 18,668 kg of mentha oil as on May 17.

MCX June mentha oil opened up Rs 3.90 at 522.00/kg, and fluctuated between Rs 519.50 and Rs 527.50/kg. At 10.55 am IST, the contract traded up Rs 8.30 at Rs 526.40/kg with a volume of 152 lots.

Benchmark July contract opened up Rs 6.50 at 533.10/kg, and tossed between Rs 525.50 and Rs 538.00/kg. At 10.56 am IST, the contract traded up Rs 11.40 at Rs 538.00/kg with a volume of 248 lots.