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price fluctuations & reasons

At the beginning of September Domestic prices were far higher than International due to short supply and disturbing rain on tapping days. But how can we agree with the price decrease far below international now? Before onam holidays the rubber collected were reached in the hands of bulk dealers. The joint efforts of bulk dealers and the manufacterers are the reason for this price fluctuations. Because most of the dealers are co-operative societies. They don’t want to contribute the proffit share to Govt. treasury. These money will be transfred through an illeagal way. Price decrease of seven and eight rupees on a single day shows the irregularities and it means that farmers are donkeys. At the time of lower prices sheets are collecting on higher rates from small dealers to support them. At this stage farmers can utilise RTI Act on selling prices of rubber right now. The market price of rubber on 27th September was Rs. 120-120.50/Kg as “vyaparivila” which is not available on any of the websites. The manufacturers who have roots in Kerala only will get benefits of this lower prices and grading exploitation from the market. 80% dealers are purchasing on this lowest rate and it is controlled by the biggest manufacturer’s news paper. The responsibility of Rubber Board on Grading and publishing prices are only for a show.
The purchase order from manufacturers before 30th September will be dispatched within one week. Thus the same quantity will be stock with dealers and manufacturers will show the same quantity as including transit to show the stock with them. In this way the month end stock will be published higher in quantity. At this lower prices farmers will not sell rubber. The transit after one week will be a reason for higher prices again to survive, because imported quantity is very low. If higher quantity was imported the reflection on International price also will show an increase to higher level which is not happened. The export prices of Rubber Dealers Federation is higher than International prices. The present decrease in price is not related with International price, crude-oil price or market stock, but it is only to exploit the production of coming buffer season from October to January. A graph is published below about the sale by growers and purchase by manufacturers from September 2007 to February 2008.
I can sell these sheets on 27-09-08 at the rate of Rs. 120.50 per Kg.

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