Rubber Board's electronic trading platform for natural rubber, dubbed 'mRube,' is set to launch in the middle of May. According to Binoi Kurian, Deputy Director of Marketing, preparations are nearing completion for the start of e-market operations, which will strengthen the existing supply chain by integrating the upstream and downstream segments.
The technology partner for developing the electronic trade platform is i- Sourcing Technologies Pvt Ltd, based in Ahmedabad.
According to Kurian, the Board has partnered with Federal Bank and ICICI Bank to operate the payment gateway and escrow account, which will eliminate the payment risk for buyers and sellers who transact through this portal.
Banks have agreed to provide interest-free advances against credit in an escrow account from buyers for the first time in the history of commodity trade, whether online or offline. He added that the Board has made arrangements with the two partnering banks to provide rubber sellers trading through this e-market with a zero-interest rate facility.
How does ‘mRube’ work?
Users can also filter buyers and sellers based on their geographical location, quantity, rubber grade, customer ratings, and other factors. Buyers and sellers can upload their offers, and counteroffers can be quoted before the trade is confirmed. The e-market modules are compatible with mobile phones, and Android and iOS versions are available.
Because of its well-coordinated supply chain, the country's rubber industry has an inherent advantage of high marketing efficiency. With changing patterns of demand in terms of quality and quantity from the consumer sector, the market ecosystem has changed significantly over time.
Despite the fact that price realization for quality rubber producers is relatively good, large volumes of ungraded rubber are traded. These producers are losing their opportunity for want of proper market awareness.
There are also instances where growers and cooperatives find it difficult to sell rubber to the final consumer according to quality grades, which discourages them from producing high-quality material. The dealer community appears to be shrinking as well. From 10,512 active rubber dealers in 2000, the number fell to 9,741 in 2010, and then to 7,135 in 2020, which is concerning, according to Kurian.
The e-trade platform aims to identify potential problems in the current rubber marketing system. Despite the fact that rubber is used in critical products such as automobile tyres and tubes, surgical and pharmaceutical products, and so on, there is no system in place for certifying the quality of rubber traded in the country. The Board has developed a system for assessing rubber quality in the electronic market, which will revolutionize the domestic natural rubber trade.
