Multi Commodity Exchange of India (MCX), the country's largest commodity exchange, will commence trading in Rubber Futures contract effective August 16, 2018. This new agri contract is targeted towards offering an effective hedging solution to the rubber value chain participants-growers, traders, exporters, importers, and tyre manufacturing companies among others.

Contracts ending in September 2018, October 2018, November 2018, and December 2018 will be available for trading. The underlying quality of the contract is the Ribbed Smoked Sheets 4 (RSS4) and the lot size is 1 MT (metric tonne) with compulsory delivery option logic. The price for 100 kilograms is quoted Ex-Kochi (Ernakulam), exclusive of all sales/GST.

Mrugank Paranjape, MD & CEO, MCX said, ''The launch of Rubber Futures Contract signifies an important development for MCX as we introduce another new commodity in the agri segment. India is one of the major consumers and producers of natural rubber. With the launch of this new contract, we expect to provide transparent and fair benchmark prices that closely reflect supply and demand fundamentals in physical rubber market. We are encouraged by the market feedback and look forward to successful launch of the contract with overwhelming participation from across the rubber industry.''

Shares of the company gained Rs 2.75, or 0.32%, to trade at Rs 855.70. The total volume of shares traded was 19,668 at the BSE (11.43 a.m., Tuesday).