Activity was at a low ebb on the Mumbai cloth market last week. Traders from Kerala and Andhra Pradesh were in the city recently and had made modest purchases. No fresh buyers had been reported in the city. At the same time, reports from upcountry centres were also not very encouraging. However, traders were hopeful of good demand in the coming festival season starting next Monday because of the bright prospects of agricultural production.
Reports from Mangaldas market and a semi-wholesale trading centre were very encouraging, and the demand was picking up. Retail demand for cloth as well as readymade garments were also reported to be on the rise. However, demand for mill varieties were confined only to quality goods. powerloom and process cloth were also in good demand competing with mills.
Upcountry reports indicated good demand for bleached white poplin in Delhi. Gwalior suiting and shirting, on poor demand, reported rising stocks. Ujjain reported sale of Rs 2.50 crore of uniform cloth during the last season.
Reports from Calcutta were discouraging with retail purchases at the weekly 'mangla ghat' being poor. It was indicated that Calcutta would be tense during the official and parallel sessions of Congress, and buyers were very cautious. In Bihar, too, traders refrained from doing fresh business as outstanding payments had been unduly delayed.
In restricted activity, business in Mumbai was confined to tery-rubia, plane and printed varieties, dhoties and sarees. The demand would go up in August due to festivals like Janmashtami and Raksha Bandhan.
Cotton: A steady tendency was witnessed on the Mumbai cotton market last week. Earlier, prices firmed up as a prolonged dry spell would have affected the cotton crop. Now, with reports of fairly good rainfall in various producing centres, the outlook for cotton production is very bright. On the other hand, mills, on expectation of good crop in the coming season, preferred to lift only immediate requirements. It was indicated that financially sound mills alreadyhad stocks of cotton to last the next three months.
According to trade estimates, the cotton crop next season would not be less
than the earlier estimate of 166 lakh bales for the current season. However, optimistic trade estimates placed current season crop above 175 lakh bales which would, indeed, be a record level of production. If the same level of turnout is maintained the next season, mills would have comfortable supplies.
Even now, the traders are of the view that farmers and trade have unsold stocks of 18 lakh bales. The Maharashtra Federation is also having ample stocks with them. The federation had not been able to clear large quantities after increasing the prices. Unless prices are slashed, it would be difficult to clear the backlog.
At the same time, there would not be any possibility of getting further export quota. Besides, the cotton crop in Pakistan had already started coming to the market and estimates are higher. It would thus contribute more cotton to export markets competing with Indian cotton next season.
The new crop in Maharashtra of Latur-Barsi would start flowing in by mid-August and would be absorbed in nearby areas. No fresh permission to start NTSD contracts in Punjab had been announced. After the announcement, forward deals would start in Punjab qualities Punjab saw gin ruled Rs 10 lower at Rs 1810-1850 and F-414 at Rs 2050-2075 per Bengal maund. Gujarat Shankar-four attracted good demand from mills, and prices ruled better at Rs 18,000-21,500 per candy. Kala was traded at Rs 12,300-12,400, waghad at Rs 13,000-13,200 and kalyan at Rs 14250-14750 per candy.
