Cloth Remains At Low Ebb, Gujarat Cotton Firms Up

Traders were also worried about the likely imports from Korea and China. According to traders prices of imported varieties would be lower by 30 per cent and hence importers would be able to reap reasonably high profits. At the same time, the local market would suffer a further setback.

Garment manufacturers are worried about the reduction in the drawback duty offered against exports of garments. As such exports of garments during the last eleven months had dropped in Germany, UK and Canada to a large extent. It would be difficult to meet the export target for the year.

In grey, prices had been on the decline. However, at lower rates increased demand arrested further fall. With the start of the new year export demand would rise. Also, due to the forthcoming elections demand for inferior grey is likely to increase.

 

Prices had been on the decline in most of the cases: many manufacturers were selling sarees well below cost. A prominent manufacturer is reported to have sold sarees worth Rs 2 crore in South by slashing prices. The sentiment in the market was bearish.

Cotton weekly: After a steady start, cotton prices firmed up on the Mumbai cotton market last week. Expecting a fall in demand and deterioration in quality, mills were keen on lifting quality cotton available at present. In view of the cold wave inflow had been hit in North India, Madhya Pradesh and Gujarat.

According to the latest report, recent rains have not affected the crop. Only cotton sown early would be inferior in quality due to unseasonal rains. Cotton crop is likely to be around 1,68,00,000 bales as against the earlier estimate of 1,63,00,000 bales.

Cotton cloth demand had been poor and hence mills are facing acute paucity of funds. The only saving grace is the increased yarn export quota for 1998. Overall, however, the demand for cotton is not likely to drop.

Punjab cotton was in demand at higher levels with Bengal desi being demanded at Rs 1,400-1,425 per Bengal maund. Saw gin ruled at Rs 1,830-1,890 and F-414 at Rs 2,015-2,025 per Bengal maund. Gujarat Shankar-four attracted good demand from mills and extra quality Shankar-four changed hands as high as Rs 21,000 per candy. Botad Shankar-four was offered at Rs 19,300-19,500 and Manavadar at Rs 20,000-20,500. Madhya Pradesh\MECH fetched Rs 20,000 and Y-1 Rs 18,250-18,750.