Futures trading in natural rubber has always been a bone of contention for traders, growers and manufacturers for quite sometime in India.
With the market witnessing major price fluctuations in the recent past, the fear over rubber Futures gained more credence.
With more and more complaints against market manipulation by rubber Futures traders, the Rubber Board tried to rein in the trend by making licence mandatory for traders involved in natural rubber business. However, the issue is still simmering with more complaints being filed by the industry players.
The latest complaint against rubber Futures came from the traders. Demanding a ban on Futures trading in natural rubber, Cochin Rubber Merchants Association stated that farmers and traders are unanimous that Futures trade is only beneficial to speculators.
In a statement issued to the media, N Radhakrishnan, president of CRMA said growers were denied their due benefit during the peak season last year due to speculation. Radhakrishnan alleged that speculators propagated the prices would increase and created an artificial scarcity of natural rubber in the market.
Despite having heavy stocks and an all-time