Rubber Board will ask farmers to hang on to stocks

Kottayam: The Rubber Board will ask growers to hang on to stocks and also push for more exports via its own companies. The board in connection with this has called a meeting of rubber exporters. There is no need for farmers to panic. Indian farmers having seen the prices at three digit heights are anxious to see the rates reach the Rs 100-mark again. The present situation is only a corrective phase because the supply shortage of rubber is clearly established by international agencies. Production will rise, particularly since farmers will be motivated by high prices. International futures, particularly TOCOM, were very volatilite and among participants in domestic futures, only a minority might be actual purchasers. During the current fiscal, exports are restricted to Rubber Board-sponsored company. Almost 50 per cent of the export is done via this company. Exports have reported a sharp decline compared with last year because of the rupee strengthening against dollar and falling profits. But the very important of all is the role played by a few stockists during last November, December and January when they joined together to foray in the futures and raise the prices artificially above international level by Rs 10. They succeeded in creating an artificial situation.