Kerala wants rubber futures trading
4 November 1999
Kerala wants rubber futures trading
KERALA, the southern Indian state that accounts for 93% of the countrys natural rubber production, is urging the federal government to accept the World Bank recommendation to allow futures trading.
It says the development of a local futures exchange would lend stability to the market and sustain farmers interest in rubber plantation.
Indian rubber prices are likely to fall further, as the four-month intensive production has begun and official procurement has yet to gain momentum because agencies are short of funds.
Futures trading will enable the government to reduce the regulatory and price protection policies administered by the Rubber Board.
The Rubber Board will be the agency to oversee the creation of the proposed exchange if the Forward Markets Commission allows trading in rubber futures.
- Indian rubber farmers awash with stocks, FWi, 10 March, 1998
- Financial Times 04/11/99 page 38