Activity suffered following disturbed conditions in the city cloth market last week. At the same time, disturbances in Ahmedabad restrained upcountry buyers as they had to postpone their visits. Meanwhile, scattered upcountry traders were seen in the city making purchases on semi-wholesale level at Dadar and Parel markets.
However, traders were keenly awaiting the start of the festival demand from upcountry centres. It is felt that South Indian buyers will soon start making purchases for Onam and Calcutta traders for the `pooja' festival.
Demand for `Raksha Bandhan' and `Janmashtami' would also start in Maharashtra and Gujarat. However, Calcutta traders have been disappointed as a party dealing in sarees had been unable to make payments to the tune of Rs 5 crore.
Reports from upcountry centres indicated good demand for school uniform cloth in Madhya Pradesh and Rajasthan. At the same time, demand for marriage season's costly sarees and suiting had dropped.
Delhi reports indicated a sharp fall in demand for readymade garments. According to upcountry traders, the school uniform cloth demand at some of the important centres was hardly 50 per cent of the normal demand. School uniform cloth which was in short supply in Madhya Pradesh resulted in price rise in most of the centres.
Meanwhile, mills are awaiting the start of the festival demand. With an eye on the Dassera-pooja demand, they had already started discussing increase in prices of various varieties.
Looking at the good demand for tapestry, furnishings and bed covers etc, Prakash Mill had already started demanding 5 per cent higher rates. Stanrose sold out three month's production charging higher rates. On the other hand, a prominent NTC unit had to curtail prices by 3 to 5 per cent.
Reports from upcountry centres indicated start of demand for gadlapat, tapestry, furnishing cloth and bed sheets. Besides, demand for printed varieties have been on the rise. With the fall in demand for mulls, prices of grey varieties ruled quiet.
Cotton: A steady tendency marked trading on the Mumbai cotton market last week. Activity was at a low ebb as mills refrained from making further purchases . In the absence of fresh developments prices were steady.
Reports from various producing centres indicate progress in sowing activity while it has already been completed in the South, Maharashtra ,and to a greater extent in Gujarat. In Uttar Pradesh it has only started. Early reports from Punjab indicate a shortfall in acreage for cotton. The outlook on the whole has been satisfactory.
According to reports from various producing centres the output this season would be not less than 17.7 million bales. With the end of the season near, hopes of a further export quota of one lakh bales have been shattered, with the official announcement by the textile commissioner that no fresh quota will be given this season. The new season export quota will be decided after looking at the crop prospects.
In view of the absence of any export quota the Maharashtra State Cotton Growers Co-operative Marketing Federation is still having large unsold stocks. However, sources said 11 lakh bales of Maharashtra cotton has already been sold to Madhya Pradesh.
It will be difficult for the Federation to clear the backlog now at the end of the season, thus they will be forced to reduce prices. It is difficult to explain the Federations sale policy, especially since they have been incurring losses which have to be paid for by the tax payers in the state.
Punjab gin ruled ruled quiet at 1,810-1,870 and F-414 at Rs 2,050-2,075 per Bengal maund. Gujarat cotton also ruled steady in limited activity. Kalagin was offered at Rs 12,200, wagad at Rs 13,000-13,100, Kalyan at 14,000-14,250 per candy. Shankar-4 ruled steady with good supplies. Inferior varieties were offered at Rs 17,000-18,000 and superior at 19,500-20,500 per candy.
