KOCHI: Volatile speculation in rubber futures is adversely affecting not only the daily trade, but also the smooth functioning of the rubber sector. This opinion was expressed by representative of the rubber trade and industry at a meeting called by the Rubber Board chairman in Kottayam last month.

A press release issued by the Cochin Rubber Merchants' Association recently said growers were deprived of their due benefits during the peak production period last year since most of them were holding stock in anticipation of better prices. In spite of having heavy stocks and an all-time high production, goods were not available according to the demand and the industry resorted to more imports. The export sector had suffered due to the speculative nature of futures trade. The Kabra Committee report on futures trade had said that a commodity in which both demand and supply were certain did not require the services of a futures market. Rubber was a commodity controlled under licence by the Rubber Board. Hence the Government was urged to issue instructions to the Forward Market Commission to direct the Commodity Exchanges to desist from trading in natural rubber, the press release said.

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