Commodity Online
NEW DELHI: Is the futures commodities market harming farming community? Contrary to the common concept about the futures market, the mint farmers are getting 67 percent of profits after the commencement of futures trading of this commodity.

According to a study conducted by the Multi Commodity Exchange (MCX), the average earnings of mint farmers prior to introduction of futures trading in the commodity was Rs 300-350 per kg. Now it has grown to Rs 500-550 per kg.

The cost of producing mentha oil from mint leaves (pudina) for the farmer works out to be around Rs 150-200 per kg, it said.

Increasing demand for the mentha oil from China and elsewhere in the world have forced poppy farmers to convert into mint cultivation in Utter Pradesh, main mint growing region of the country. The acreage of the mint cultivation has increased due to intense demand for the commodity, it said.

During 1980s, Lucknow-based Central Institute of Medicinal and Aromatic Plants came out with a mint seed to develop it as a significant cash crop in those areas. The area under mint cultivation has surged by 60 percent to 2.4 lakh hectares in 2007-08 from 1.5 lakh hectare in 2003- 04, the report said.

Earlier, farmers used to sell their entire production during arrival season, June and July. It was benefiting large traders who had money to buy the stock in huge quantity.