Spice Assn Launches Online Trade In Rubber Futures

Kochi, April 26 | Updated: Apr 27 2004, 05:30am hrs
The future in commodity futures trade lies in mergers and amalgamations where small, regional and single commodity bourses will have to merge with other ones or allow themselves to be taken over, according to Forward Markets Commission (FMC) chairman Kewal Ram.

Here in connection with the inauguration of online trading as well as futures trading at the India Pepper and Spice Trade Association (IPSTA) running the worlds first futures commodity trading exchange in pepper, he said that with the entry of multi-commodity exchanges, regional exchanges concentrating on a single commodity would find the going tough. However, in the case of IPSTA which had the experience in pepper and spice trade, the future was bright and it could emerge as a global player in commodity trade.

With the launch of rubber futures, the exchange had grown into a multi-commodity exchange and also had the FMC sanction to go in for futures trade in turmeric and chilli which it proposed to start soon, according to IPSTA president Kishor Shamji.

It had been quite sometime since IPSTA considered going online and had hit stumbling blocks with opposition even from within. Mr Shamjji said that with the prominence of domestic trade and catering to that sector, the exchange had introduced a new grade of 550 gl (gm per litre). The situation was such that while exports were around 22,000 tonnes, trade in the domestic market was around 50,000 tonnes. Hence the exchange looked at supporting the domestic market through the new grade.

Spices Board chairman CJ Jose, however, had a word of caution. He said that the introduction of such low grades would affect the industry.

Instead of going in for such varieties, the exchange needed to concentrate on other internationally acknowledged varieties like the Tellicherry gold extra bold.