Natural rubber prices firmed in the primary commodity market in Kochi during the week ended June 19 following the intervention of STC. The prices, which crashed to Rs 33 per kg on Monday, inched up during the course of the week and closed the week at a slightly higher level of Rs 33.50Dealers are, however, expecting the prices to stabilise below the Rs 34 per kg mark.The current volatility, according to them, is due to the restricted arrival of the commodity following the onset of monsoon and the STC's intervention drive. The STC has so for procured 115 tonnes of rubber from the iopen market through a host of cooperatives roped in by the agency for the purpose.
STC has been abstaining from purchasing rubber as the prices shoot up above the Rs 34 per kg mark after the news of STC's reentry was broken by the Government. It may be recalled that the State Trading Corporation entered the market with a mandate of procuring an additional 20,000 tonnes of rubber on June 16, Following commerce minister RK Hegde'sannouncement to this effect.
The minister had directed the agency to re-enter the market in a bid to shore up the plummeting rubber prices, following the hue and cry from the state government and MPs. STC was asked to procure the entire quantity of rubber at a price not exceeding Rs 34 per kg.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
