Rubber Delivery at NMCE surges by 263%

Physical delivery of Rubber Futures at NMCE Surges by 263%

Rubber industry also now at NMCE

16^th Feb 2010, Ahmedabad, National Multi Commodity Exchange of India witnessed 263% increase in delivery in Rubber from 430 metric tons in January 2010 to 1559 metric tons in February 2010. The Rubber Future contract expires on the 15^th of every month. The delivery happened at NMCE registered warehouse of CWC. An increase in demand from the rubber consuming industry for quality rubber and multi delivery centers of exchange certified warehouse of CWC were the key reasons for the increase in delivery.

“This is very healthy trend because on one hand producers are able to harness good price and deliver their Rubber in the exchange warehouse and on the other hand user industry is able to hold the position by just paying margin money and take delivery by paying full only on the date of delivery. Quality of Rubber is also being maintained by scientific storage in quality godowns of CWC, “said Mr. Anil Mishra- CEO, NMCE

Mr. B.B. Pattanaik (Chairman, NMCE & MD, CWC) said, “I express my satisfaction over large number of deliveries taken by the consumers. Rubber has been a jewel in the crown of NMCE where a large number of growers participate in Futures and also take advantage of this alternative platform where they can sell their produce at appropriate price through depositing the produce with CWC for scientific storage and for taking loan against the CWC Warehouse Receipts from the banks.”

Mr. C.P.Krishnan- Director, Geojit Comtrade commented, “Many user industry of Rubber have taken delivery from NMCE certified warehouses of CWC. The key reason for taking delivery from exchange certified warehouse is that quality rubber in large quantity can be taken delivery at designated locations.”

The deposit at exchange certified warehouse has also been increasing and more than 7230 metric tonnes has been deposited in the exchange warehouse and more and more deliveries are taking place. Rubber deposits are lying at CWC warehouses at Aluva, Ernakulum, Kakkanad, Palakkad, Kozhikode, Kottayam and Trichur.

NMCE, which is the only national exchange in the country to trade Rubber futures also, has the distinction of being the third largest Rubber Futures trading exchange in the world after Shanghai Futures Exchange (SHFE) and Tokyo commodity Exchange (TOCOM).

About National Multi Commodity Exchange

National Multi Commodity Exchange is the first nationalized multi commodity exchange that pioneered the commodity trade in India. It has more than 350 members on board today with a Pan India presence. Promoted by leading commodity – relevant institutions NMCE has positioned itself as an exchange for the purpose of Price Discovery, Price Risk Management, transparent transactions and seamless hedging. These commodity relevant institutions include Central Warehousing Corporation Ltd. which has more than 500 warehouses across the country with a storage capacity of more than a crore tonnes., Punjab National Bank – country’s second largest public sector bank having more than 4500 centralized banking system online branches, NAFED – the apex body of more than 600 marketing co-operatives, Gujarat Agro Industries Corporation Ltd -  a nodal agency of Gujarat state for promotion and setting up of modern agricultural markets, Reliance Money-strategic investor, Neptune overseas Ltd – an erstwhile recognized export house by the Government of India having a dream and vision of technology backed transformation of the market economy.