ATMA seeks fluctuations in rubber futures

Kottayam, Mar 29: Automotive Tyre Manufacturers Association (ATMA) Representative D Raveedran today sought the intervention of the Rubber Board to make futures trading beneficial to all by containing large scale fluctuations.

A meeting of various stakeholders in the rubber sector convened by Rubber Board Chairman Sajen Peter opined that large-scale fluctuation in the price of rubber in futures trading would create negative impact on the market and regulations should be introduced to contain fluctuations.

The Chairman said the board had been monitoring the situation in the past few months and issued warning when prices were lifted much above the international prices even during the peak production period.

The fears were compounded when prices came down during lean production months, which was a rare phenomenon. The aim was to make futures trading system beneficial to farmers, he said and sought the cooperation and suggestions of all concerned.

Indian Rubber Dealers Federation President George Valy said that large-scale fluctuations in prices would be detrimental to small traders.

UNI