Heavy rains interrupted trading on the Mulji Jetha cloth market for four days but was compensated by good demand thereafter over the last week.. Grey traders were disappointed as yet the demand from Calcutta had been very poor. In view of the sluggishness in demand, Ichalkaranji powerloom operators had to cut down production and only 60 per cent of the powerlooms were operative. The downpour even proved fruitful to prominent mills who had been able to sell about 2,000 bales of different varieties of cloth to 20 traders who had been here for purchases. t. According to reports, the management had decided to continue operations at the Svadeshi mill which had been hard hit financially in recent days.
Now the Tatas have agreed to meet the financial requirements and reported to have assured the authorities to continue operations.
Traders are awaiting for the start of good demand in coming days. However, due to Jain festivals followed by Shradha Paksha the demand would be affected here as well as the upcountry centres.
There after, good demand would emerge for Navratri celebration as in past the demand for the celebration had been even more pronounced than during Divali season.
At the same time upcountry traders also reported movements in cloth demand and anticipate good buying for Poonja and Dassera festival season as good rainfall helped agricultural output. . . Garment manufacturers had completed their purchases and fresh buying would stop. The demand for tapestry, furnishing cloth and also for woollen varieties would pick up in coming days.
Cotton weekly: A firm tendency was witnessed at the Mumbai cotton market last week. Sellers were reserved in view of depleting stocks and the absence of fresh supplies. The meeting of the Cotton Advisory Board to take stock of the current season had been postponed due to the absence of official authorities.
The Union government came out with an export quota of one lakh bales of staple cotton of the current year to the Maharashtra State Co-operative Cotton Growers Marketing Federation.
In view of the stocks with the federation, this would have little impact on the supply-demand in the open market. Even then trade circles anticipate further export quota to be given to the Federation. The sentiment, however, had not been affected but sellers were sitting tight on the supplies and demanded higher prices.
Mills were not at all showing fresh interest in view of sluggish cloth demand. Even considering the current crop at 170 lakh bales, new season harvest would be about 10 per cent higher and would take care of the demand for mills as well as exports.
Even trading for Non-Transferable Specific Delivery contract had been very limited as mills showed little interest in making purchases from Punjab as the delivery would be uncertain.
Sellers, however, were keen on entering into commitments because of the likely pressure of the new crop during October-November season. Mills preferred to wait for the crop poition as well as the quality before entering into commitments. .
Punjab cotton lacked activity and only few transactions had been reported. Punjab saw gin firmed up by Rs. 15 at Rs. 1,850-1,925 and F-414 at Rs. 2,080-2,125 per Bengal maund.
In Gujarat qualities Kalagin was demanded higher at Rs 13,000-13,100 Kalyan at Rs 15,250-1,500 and Waghad at Rs. 13,500-14,000 per candy. Shankar-four superior varieties were demanded between Rs. 20,500 and Rs. 21,500 and inferior at Rs. 18,5.00-19,500.