Cotton Firms Up, Cloth Slackens

The trend in the Mumbai cotton market was by and large remained firm this week. Traders were active while demand from mills had been still below normal in view of the paucity of funds due to pilling up of stocks. According to traders in Punjab, the inflow at present is well below normal.

The Maharashtra State Cotton Co-operative Marketing Federation had hiked the prices of its cotton twice during last week and was able to clear about 5 lakh bales and will have more inquiries for more cotton. In the prevailing circumstances, the Federation would be able to clear the stocks and procure remunerative prices. During the elections, the policy of monopoly purchases of cotton would also commence. Meanwhile in Punjab, co-operatives and other public sector agencies were active in pushing up the prices. Despite restricted demand from mills, traders were active in view of making profits in the later part of the season. In Gujarat, the demand for Shankar-four had been fairly good and prices were up by Rs 250-300 per candy.

 

Punjab cotton firmed up by Rs 25-30 per Bengal maund while in Gujarat Shankar-four was up Rs 250 per candy. Punjab Bengal deshi was up at Rs 1,450-1,500, Saw gin at Rs 1,900-1,930 and H-414 at Rs 2,040-2,050 per Bengal maund. Gujarat shankar-four was in demand at Rs 20,000-21,250 per candy. M P Y-1 fetched Rs 18,250-18,750 and H-4 at Rs 19,250-19,500 per candy.

Cloth weekly: A further deterioration in demand was noticed at the Mumbai cloth market last week.

However, reports from upcountry centres indicated the upswing in demand for election banner inferior cloth priced at Rs 7-8 per metre. Upcountry traders had been active in making purchases for summer cotton fine and super-fine varieties, the prices of which had started rising at upcountry centres.

Mills had been active in increasing the prices to take full advantage of the demand in future. After an increase in grey prices by the NTC mills, many local units had started selling summer voiles, mulls and cambrics at higher prices. However, traders are already worried about the heavy accumulation of stocks in godowns and shops. This created difficulties as far as the funds were concerned. Mills, too, had virtually very limited fresh programmes and had to clear piling stocks.

In grey, many producing centres had still been having price reductions to the extent of 10 to 15 P per metre. According to these producers, prices had dropped to the extent of 60-65 P in the past and yet the demand had been below normal. On the other hand, poplin grey with a reduced production and moderate buying prices had been on the rise by about 10-15 P per metre. With the hope of fresh purchases for election banner cloth and probable demand for export, grey prices are likely to be stabilise in cotton yarn and grey varieties.