Rubber farmers to enter futures trading

KOZHIKODE: The rubber farmers in and around Chakkittapara in the district will soon get benefits of the commodity futures trading under a Nabard project to be carried out through Viswamitra Farmers Club. The commodity futures trading is an agreement to buy or sell a commodity at a predetermined price and date. “Rubber from about 300 farmers of Chakkittapara will be collected with the help of Viswamitra Farmers Club and stored in the godown of the Centre Warehouse Cooperation for future trading. The rubber stored will be made available at commodities exchange and through the exchange, the rubber will be sold at a predetermined price,” Nabard AGM Nagesh Kumar told Express. Of the 2,000 farmers clubs in the state, Viswamitra Farmers Club will be the first one to use commodity futures trading for rubber, he said. “With the introduction of commodity futures trading, the profit of the farmer in futures trading could be assured. At present, the farmers are able to sell their goods at spot price only or have to preserve the goods hoping the price will improve in the future. By introducing futures trading, the farmers will be able to sell rubber for a higher amount, which varies based on several factors. Nabard is trying to introduce the farmers to the initiative, thus giving an option for the farmers to select whichever mode profitable,” he pointed out.     Nabard is expecting to roll out the project by November. “We are aiming to collect 10 tonnes of rubber a week from the farmers and sell it through commodity futures trading. The farmers will be given assistance through Chakittapara Service Cooperative Bank,” the AGM said. “The farmers club will need temporary storage godown, commodity trading centre with online facility, an office manager and transportation facilities to sell the product in commodity exchanges. The farmers’ club already has a commodity trading centre with online facility,” he said. With the project, the farmers will get the benefits of the futures trading and can opt between spot trading and future trading estimating the profit gain, he pointed out. “About 300 small-scale farmers will get the benefit of the initiative. The farmers, who are not members of the farmers’ club, will also be included in the project,” he added.