Rubber dealers in crunch due to unprecedented price fall

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Kochi, Oct 7 (UNI) The rubber market has crashed by over Rs 40 per kg in the past fortnight and dealers who bought for subsequent deliveries have lost heavily, Rubber Board sources said.

During the past three working days, the price fall had been around Rs 18 per kg, they said.

On a ten tonne lot, the dealers have lost over Rs two lakh on each deal and many of them had several lots in hand, they said.

Such unprecedented fall was a fallout of the trends in the international commodity and finance markets.

To add to their woes, the consumer industries were either cancelling their orders or absenting themselves from the market.

Stating that in rubber trade, the business margin was half per cent, the Rubber Board officials said the dealers would not be able to make up their losses even in the next two years.

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