Rubber futures trading has further invited flak from natural rubber producers and consumers in the country.
In yet another plea, the All India Rubber Industries Association, a forum of the domestic rubber producers and consumers, called for ban on Futures trading in natural rubber.
Consumers should participate in a big way for a successful Futures trade. This participation is, however, absent in the case of rubber. Apparently, speculators are the only participants and, hence, the Futures trade only reflects the fictitious prices, leaving other stakeholders and small players high and dry, AIRIA said.
Rubber is currently traded on the MCX, the NCDEX, the NMCE and the Kochi-based Indian Pepper and Spices Trade Association.
Questioning the need for futures in a commodity that is consumed more than produced within the country, AIRIA said the Futures only helped in raising the prices, which have more than doubled since the launch of rubber futures in 2002-03. In 2002-03, the average price of natural rubber was quoted at Rs 54 a kg, which surged to over Rs 100 a kg last year and is now averaging at Rs 92 a kg.
When planters were getting a fair price in the physical market, what was the need for Futures, which only benefit speculators and big businessmen.
According to the association, in the futures market, the prices went up if the demand was created artificially by big players, while they dwindled if they imported around 20,000 tonnes from Malaysia and Indonesia.
