Rubber traders relieved

The lifting of the seven-month ban on futures trading in natural rubber (NR) has evoked sighs of relief among traders in the two major markets of the commodity in the country, Kottayam and Kochi.

The National Multi Commodity Exchange (NMCE) has already applied to FMC to resume rubber future contracts. Sources at NMCE said contracts for three months — January, February and March — would begin immediately in rubber trading, once the approval is given.

Protest against futures trading weakened with price of natural rubber dipping to a low of Rs 65 a kg. In fact, there is strong demand from growers and traders to re-start contract trading to bail out the market. Those who are against futures trading are also not demanding a total ban on rubber futures trading. They say that those who participate in the trading should get registered with the Rubber Board and the daily fluctuation in prices should be restrained within a limit of 1 per cent.

In Kerala, there has been mixed response over the lapse of the ban. A major chunk of growers and traders welcomed the move as they expect the futures trading to energise the market. Local rates are lower than the global price tags and parity in prices can be achieved through futures trading. A leading Kottayam-based grower said the market might get better as it would be active through advance price realisation. Though this will not cause an immediate spurt in prices, it might bring in some relief through speculative business, he said.