Top sources in the board told The Financial Express that it has already initiated steps for introducing futures trade in natural rubber in a bid to ensure price stability and remunerative returns to the growers.

IIPM had already structured the feasibility report for introducing futures trade in two most-traded commodities in India, namely coffee and tea. While the coffee futures had already taken off under the aegis of Coffee FuturesExchange of India (COFEI), the Tea Board is understood to have set in motion the process for introducing futures contract in the commodity. At present tea is being auctioned at various centres across the country including Coonore, Coimbatore, Kochi and Calcutta.

Sources said that the board will submit the terms of reference for commissioning the study by the independent consultants to the World Bank along with the request for financial assistance soon.

The estimated cost for commissioning the study is expected to be around Rs six lakh.

"World Bank's approval has become essential as the proposed consultancy falls under the head of single source consultancy," the sources said. Single source consultancy generally refers to the appointment of consultants without inviting competitive bids.

According to the board, the consultants may have to focus on the possibilities of introducing futures trade in natural rubber besides going into other related areas like marketing and storage. The related issues includethe ownership of the exchange -- whether in the private sector like other commodity exchanges, or by the board alone or by a joint venture company floated by the board in association with the private players.