KOCHI, FEB 11:
The National Multi Commodity Exchange has registered 80.45 per cent increase in delivery of rubber during January.
The figure was 1,606 tonnes against 890 tonnes in January 2012, the largest-ever on the exchange.
Producers and suppliers have benefitted by giving huge delivery on the exchange because the exchange price was more attractive, a press statement issued here said.
Certified warehouse
NMCE has a certified warehouse of CWC for delivery of rubber in Kerala near all the producing areas at Aluva, Ernakulum, Kakkanad, Kakkancherry, Kozhikode, Palakkad, Piravom Road and Thrissur.
The stock position in the exchange certified warehouse is displayed on the Web site of the exchange in which one could get the information of daily arrivals and despatch.
The stock position as on January 30 was 7,148 tonnes out of which 428 tonnes were in plastic packing.
NMCE team
NMCE has formed an independent team of quality experts for periodical check of the quality of rubber in the exchange certified warehouses consisting of Rubber Board quality expert, regional office of CWC and NMCE representative.
This team submits the independent quality reports and also guides all the warehouse managers and their staff on rubber quality, the statement said.
Price discovery
The commodity exchanges are not meant for physical delivery but for price discovery and price risk management.
Physical delivery is the enabling provision to give delivery when it is most profitable in terms of price, otherwise suppliers give delivery to their clients nearer to their location so that criss-cross movement of the commodity is avoided, which otherwise makes the commodity more expensive.
Threat of delivery is to keep the futures market aligned with the spot market so that nobody is able to manipulate the price on the futures market and convergence takes place on the settlement date, the statement added.
Source: Business Line
