ATMA and AIRIA call for futures speculation freeze
Leading India tyre and rubber industry associations Automotive Tyre Manufacturers Association (ATMA) and the All-India Rubber Industries Association (AIRIA) have asked for immediate suspension of futures trading in rubber following allegations of speculation in the futures market playing havoc with physical markets.
In a letter to the Forward Market Commission, ATMA pointed to speculation in futures impacting the spot market. According to the communication, the recently-expired November contract had open position of 1,491 tonnes as on 1 November and stocks in warehouses were just 110 tonnes. This held the contract under pressure till expiry.
The news comes in the immediate wake of India-based news website Livemint.com reporting that antitrust regulator the Competition Commission of India (CCI) is looking into a possible cartel within India’s tyre industry including ATMA.
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