From the above points we can see that feature trading is beneficial when it have a control of stock under custody in humidity controlled storages in all districts of Kerala with a direct co-operation of farmers and it have to function under the control of a regulatory body. Now the feature trading may be functioning without handling Rubber. The need of grading transperancy have to be implemented by displaying various grade sheets (Full sheets) at purchasing centers. Dealers are not under control of Rubber Board on grading exploitation. Rubber Board have to come in to fields to workout grading transparency on sale deed. Instead of GREEN BOOK display of various grade sheets are helpful to farmers to get a reasonable price for their various grades. QRMS can display grade sheets for purchase to sell on the same grade from the members.
Thanks
S.Chandrasekharan Nair
Mob: 9447183033
Dear Mr. Nair,I am amazed the details you have collected on Natural rubber and my sincere appreciation for the same.Imports of any material happens due to three considerations :Quality
Availability and
Price.In the case of Natural Rubber there is always a tendency to throttle availability to achieve maximum price. A good deal of stockists have emerged in the market since 2003 (when the futures market started) and they comfortably take positions at 10% of the value of the goods.The result of this is well known. During the peak production time , the futures market quoted Rs. 118 per kg while physical market was at Rs. 95 to Rs. 98 per kg. There were no sellers in physical market at these levels of prices also.This has led to all consumers to imports (which were cheaper at that time) only to be sure of the availability during the lean season. As imports arrived the demand went down which lead to lowering of prices. Many good dealers are trapped having high priced stocks unable to sell at lower levels of prices.Now again the same thing is happening in May 2007. Looking at international market fresh players have entered in the indian futures market since 16.5.07 jacking up the futures prices higher than physical prices. Selling does not happen even if the consumer offers a prices of Rs. 86 per kg. May be a repetition of Oct- Dec 2006 again.
Elsewhere in the world market for playing in futures market the margin money is much higher than 10% and there is a regulatory body which declared the open positions and have limits for every player. Here we do not have any such provisions and you are aware of what happened on 05.03.07 in the futures market – on a single day the futures market crashed by Rs. 9 per kg , pulling the physical market down. Lot of dealers lost good amount of money in this.
I feel if the futures market for rubber is stopped and if rubber board ensures material to the consumers at the reasonable prices all times the market can function smoothly.
Thanks
Ramachandran.
Traders call for ban on rubber Futures
The Rubber Board does not favour any ban on futures trading in the commodity, according to Mr Sajan Peter, Chairman. “We are not for complete ban of rubber futures. At the same time, we would like the futures to have a positive effect on the growers. They (growers) will have to get a fair idea of how prices will behave in the future,” he said, when contacted on rumours that the Centre was toying with the idea of banning rubber futures.