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The participation in National Multi Commodity Exchange's (NMCE) rubber futures has been growing and warehousing capacity has been increased to about 30,000 tonnes so that producers and suppliers are able to stock up to the maximum capacity. Although, on an average about 12,000 tonnes of rubber were stocked at any point of time last year, the NMCE said that the average would have been higher if the storage facilities were increased.
At a meeting organised by the NMCE in association with the Forward Markets Commission in Kochi, representatives of producers assured that they would not only improve the quality but also create greater awareness among the growers and traders. Traders and packers have pledged that all doping would be done within limit, although some unscrupulous traders might have used excess doping that can now be identified with the traceability programme that the warehousing corporation and the NMCE would introduce.
Doping
Doping is an instance where a stockist uses powder and solutions to mark his identity and the quality of the rubber on 50-kg weight of rubber sheets for future identification at the warehouses, Mr N. Radhakrishnan, Advisor to the Cochin Rubber Merchants Association, said. “There are some unscrupulous traders who use half to one kg of doping in order to increase the weight of his stocks. If at the time of delivery, the weight is found to be different, it is the warehouses and that NMCE who would be held accountable.”
The meeting was called in order address the issues of stakeholders where prominent members and senior officials of the Rubber Board, NMCE, producers, cooperative society, central warehousing corporation, rubber user industry, traders and brokers were present.
Dr S. Mohan Chandran Nair, Director of Rubber Board, stressed the need on quality and packing improvement in the case of rubber. He also dealt on how doping can be reduced. It was decided that CWC would be given sample rubber sheets which would show acceptable range of doping and those with excessive doping would be rejected.
It was also decided that awareness programmes would be conducted on doping aspect in which the NMCE and the CWC would also participate along with Rubber Board. The CWC would maintain the details of the original depositor so that excess doping suppliers could be identified and traced at any stage.
Pepper delivery centre
Dr Charles Kithu, Director of Spices Board, offered to provide excellent grading and processing facility at Vandanmedu for both black pepper and cardamom. Mr Anil Mishra, Managing Director, NMCE, welcomed the move and asked members present whether Vandanmedu should be declared as additional delivery centre for black pepper.
Over and above Kochi, the NMCE said that it would declare Vandanmedu as an additional delivery centre, which would be in the interest of the farmers. The CWC has acquired good go-downs for storage at Vandanmedu and they are committed to give excellent service to both producers and users.
Warehouse receipt funding issue was also discussed with the bankers present and they have agreed to look at the increasing opportunity of almost risk free advances against warehouse receipts when it is accompanied with forwards sales note on the NMCE because the banks would have risk free lending and would get paid directly by the NMCE on production of warehouse receipts.
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