Experts have said that the usage of the throat cooling oil has reduced in chewing tobacco products. FMCG giant, Emami is enjoying lower costs of raw material due to the ban and company officials have said that the cultivation of mint leaves from which the oil is extracted has grown.

The prices of menthol have started falling due to the effects of a ban on tobacco products such as paan masala and gutkha in several states around the country. Menthol accounts for 20 per cent of its raw material costs for the company and the falling costs of the commodity will help the company the company control its costs.

The company has indicated that it still has some inventory of some high cost Menthol and it will take some time until the benefit of lower cost Menthol is extended to the market. Emami director, Mohan Goenka has said that the company will transfer the benefits of cheaper raw materials to the customers in the first quarter of 2013-14.

Mr. Goenka said, "Menthol prices have definitely moderated and we are getting it at `1,550-1,600 a tonne. Prices have moderated because the acreages of mentha have grown by as much as 50% and also because of the ban on paan masala and gutkha in lot of states and our senses is that prices will stay at these levels."