All time high Rubber turnover at NMCE

All time highest Rubber turnover at NMCE

• Rubber turnover breaches the Rs 200 crores mark for the first time
• Highest ever single day turnover at Rs. 207.77 crores on 21^st April
• This is despite the fact that the rubber prices are firm for the last few weeks
• Rubber is paying highest returns to investors amongst all the asset classes

 23^rd April, Ahmedabad:

On 21^st April 2010 Rubber turnover at NMCE crossed Rs.200 Crores and was at 207.77 Crores, 12,010 MTs were traded and open interest has reached 8,516 MT. All stake holders the producers, the cooperative societies, the investors who work on cash & carry, the tyre industry, other consuming industry, have all participated, which is giving very healthy sign. This is a grand achievement, highest ever since the launch of the contract. Earlier the highest turnover was on 26^th December 2006 and it was at 189.8 Cr.

Mr. Anil Mishra, Chief Executive Officer- NMCE said, “Rubber production has just undergone wintering season still the trading volume was so large.  Wintering season is the season when rubber trees shed their leaves and as a result tapping of rubber comes down. It is the low tapping season. NMCE'S increased efforts of sensitization of all the stakeholders are showing good result and now all the stakeholders have understood the need of hedging their price risk in rubber.”

“The price of Rubber has been very high due to lower global supply as a result of non conducive weather on the one hand and increased demand on the other. While the demand was burgeoning due to stimulus package and revival of the auto sector, supply was not able to keep pace. Good price is encouraging the farmers to tap as much as possible. The producers now should not hold back their produce and take the advantage of huge price upswing. Once supply increases after wintering season is over the price may soften significantly”, Mr. Mishra added.

  

Producers have kept their rubber in NMCE warehouses and taken funding from the bank against warehouse receipt. NMCE has presently about 7000 MT of Rubber stock in the warehouses at Aluva, Kozhikode, Ernakulum, Kakkanad, Thrissur, Kakkancherry and Pallakad.

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.