Commodity OnlineKOTTAYAM: India’s apex Rubber Board says it does not favour any ban on futures trading in the commodity. It said forward trading provides an opportunity to the growers on price trends in rubber.
Talking to reporters, Rubber Board Chairman Sajan Peter said: “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.”
Asked about the rumours that the government is toying with the idea of banning rubber futures, Peter said there is no basis for such rumours.
He pointed out that Indian growers get the highest farmgate price for rubber compared to counterparts elsewhere.
“The share of profit of intermediaries in rubber trade is very low. Thus, futures actually do not contribute much to the growers' return. But futures trading provides an opportunity to the growers on the likely price trend," Peter said.
The Board had called for a meeting of various players in the market a month back to discuss problems arising out of futures trade.
Rubber dealers and the Automotive Tyre Manufacturers' Association, the apex body of tyre companies that buy half the rubber produced in the country, had demanded a ban on futures trading.
The Rubber Board Chairman said that the meeting had decided that futures trading would ensure a positive impact on spot rubber prices.
