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Trends in Mint, Part 1: Ingredients
By: Stephen Smith
Posted: February 24, 2012, from the March 2012 issue of P&F magazine.
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- From P&F Magazine
- March 2012 issue, pg 43
- 1 pages
- Adobe PDF for download
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Ask anyone who buys mint today and they will probably tell you the price is too high and many will state that they are not going to cover until the prices ease. Even if there was a will to purchase oil, the financial institutions have such a tight restriction on lending at present that buyers may not have the freedom to invest. Unfortunately, there are fundamental problems with this situation, which means the industry may have reached a point of high-level stability in the mint market.
It is true prices are high compared to their historical value; the Multi Commodity Exchange of India (MCX) was trading crude Mentha arvensis at 600 rupees in January 2010 and today it stands at 1,600 rupees—but why is the price at this level? Production costs. The price of fuel is a factor—irrigation water is often pumped up from wells—and of course fuel is also used for second stage refining. However, this would not account for a 2.5x increase.
This is only an excerpt of the full article that appeared in P&F Magazine, but you can purchase the full-text version.
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