• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Aravindan

Rules to limit fluctuation suggested

Kottayam March 29 Variations in prices of rubber futures beyond a point seem to be unfair, according to Mr Sajen Peter, Chairman of the Rubber Board. Addressing a meeting of concerned persons at Rubber Board, he said norms to limit maximum variations in daily prices should be included in futures contract.

The Board had been monitoring variations in rubber prices, which do not tally with the usual explanations issued during the last few days, and appeals and representations had been received in this regard, he said. Prices had shot up during the peak production season beyond global levels and the Board had issued a warning. To justify the warning, prices started declining even during the low production months.

The futures trading has created a situation whereinthose who do not genuinely require the commodity could influence the market. It has also to be ensured that futures have more advantages than disadvantages. The Chairman invited the views and suggestions of all concerned in this matter.

Keeping it within 6%

Mr Kailash Gupta, representing the National Multi-Commodity Exchange, informed the gathering that the fluctuations had already drawn their attention and therefore, instructions had been issued that the daily variations should not go beyond 6 per cent. It is to be further examined whether 6 per cent itself was high and for this statistics regarding variations in real trading during the past should be collected.

Consensus for 2-3%

Of the total contracts, real transactions were only 1.6 per cent in futures, said Dr M.C. George of Infam. Futures trading may not be advantageous for the rubber sector, according to Mr A. Jacob, Velimala Rubber Company. The consensus arrived at was that fluctuations in futures should be restricted to 2-3 per cent a day.

The fluctuations in futures considerably affect the dealers, especially small traders, said Mr George Valey, President, Indian Rubber Dealers Federation. Mr N Radhakrishnan, President, Kochi Merchants Association, Mr Satish Abraham, President, Latex Producers Association, Mr Thomaskutty, All India Rubber Industries Association, were of the view that there were various issues that required attention in rubber trading.

Futures being a reality, the Board's intervention was essential for their smooth and transparent functioning for the benefit of all, said Mr D. Ravindran, Secretary-General of the Automotive Tyre Manufacturers Association.

More Stories on : Rubber | Commodity Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rice mills ploughing a growth path

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line