ISBN: - 978-93-88936-09-5 dealers and agents. The presence and influence of a few big dealers in the Indian rubber market cannot be overlooked. They are able to control the supply side of NR by adopting their profitmaking strategies. a) Indian rubber market has been influenced by the pressure tactics of two different pressure groups of producers and manufacturers to protect their own interests. b) The Indian rubber market has no mechanism to dispose of the accumulated stock of rubber especially during peak production periods. But when the market feels scarcity of rubber, it will be rectified through import within no time. 5.5 PROBLEMS FACED BY SMALL GROWERS IN MARKETING The small growers are occupying a very dominant position in area and in production in the rubber plantation industry in India, their problems related to marketing ' are complex. 1. Difficulties in Regular Disposal of Stock Timely and regular disposal of rubber at reasonable prices is very important to the small holders. But accumulation of very high stocks with growers is a regular feature in the peak production period in September - January. Generally, the stocks are left at normal level only from the month of April and the small holders are affected by this. 2. Difficulties in Grading Visual grading invariably leads to the unhealthy trading practice of downgrading because the system is subjective in nature. Down grading exists during periods of slackening demand when the buyer is less anxious to buy and the seller is more anxious to sell. In such situation the price and grade will be fixed at the buyer's choice. "No grading agency at present functions to confirm or contradict grading which is usually done by the buyer." The small holders whose holdings capacity is poor are in the midst of this unhealthy practice. 3. Lack of Certainty in the Market This is also a problem incidental to accumulation of stock with growers and lack of demand. Wide fluctuations in the market prices of rubber market are based on the demand and supply of rubber. Under such conditions there is no guarantee that the small holders are assured of at least the minimum notified prices. The uncertainty in the market leads to the exploitation of the small holders by the dealers and middlemen. 4. Price fluctuations The Rubber Act vests the Central Government with powers for prohibiting, restricting and controlling import and exports of rubber either in general or in specified classes. The Act empowers the Government to notify prices. Minimum and maximum prices are fixed and notified so that growers may know what minimum prices they are entitled to and the rubber users may know 136
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