The Hindu Business Line : NMCE sees delivery for rubber futures at 1,700 t

THE National Multi-Commodity Exchange of India (NMCE) is expected to facilitate rubber delivery of about 1,700 tonnes during the current financial year 2003-04, exchange sources said.

The exchange on Monday completed its one-year operation of futures trading in rubber.

Despite its initial scepticism, the rubber futures trade is turning out to be an area of fast growth.

After its launch in mid-March 2003 on the exchange, the volumes in rubber futures trade have increased several-fold in the country, an official said.

NMCE has experienced 11 months physical delivery on rubber from initiation. About actual physical deliveries, the trend of volume is taking off slowly but steadily i.e., 6 tonnes in May 2003 series to 608 tonnes in March 2004.

Rubber futures attracted real hedgers and for the first time, co-operative sector participated in the futures by taking delivery of rubber in October 2003.

The exchange has facilitated the delivery-based transactions and the participants are satisfied from the delivery mechanism, sources said.

The liquidity of the futures has also attracted the non-conventional rubber players such as commodity investors who used to park their surplus resources in the commodities and undertake hedge by way of selling futures against their underlying cash exposure.

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