Cotton Subdued On Poor Demand

A quiet trend was witnessed on the Mumbai cotton market last week.

The demand from mills was limited, while buying by the Cotton Corporation of India was not effective enough to stabilise prices or lift the same to reasonable levels.

In view of paucity of funds and accumulation of stocks, mills were not in a position to buy more cotton, which was available at reasonably lower rates.

It was reported that even in case of Shankar-four, mills availed of quality goods at Rs 3,000 lower than in the previous season. Prices of Punjab, Madhya Pradesh and Gujarat cotton declined to a great extent.

 

Keeping in view the weak prices, there was demand for exporting cotton under the Open General Licence scheme. It was argued that mills have been allowed to import cotton under OGL scheme and hence the same facilities should be given to cotton exporters.

The inflow of cotton in Punjab dropped at the end of the week, resulting in prices recovering to a small extent. However, prices in Madhya Pradesh and Gujarat remained subdued because of limited demand from mills.

Punjab J-34 saw gin recovered from Rs 1380--1600 toRs 1400-1620, while F-414 gained Rs 15 at Rs 1800-1830 per Bengal maund. Gujarat Shankar-4 recovered to Rs 17750-18200 per candy.Kalyan was in demandbetween Rs 11,000 and Rs 11,750.

Cloth: Activity on the Mumbai cloth market was at a low ebb last week. Reports from upcountry centres were also discouraging. At the same time, due to limited buying, the support prices of grey varieties were subdued. According to manufacturers, prices of grey would not drop as sellers would prefer to stop production than to sell at lower prices, thereby incurring losses.

According to reports, more and more mills are heading towards difficulties.

One of the mills in Maharashtra was said to have put up closure notice effective April 1. Besides, three city units had been hardly able to meet both ends. Also, they had been experiencing difficulties in getting raw materials as yarn, dyes and chemical traders refused to provide further credit to them.

Cotton mills are waiting for some concessions in the coming budget.

However, if no relief is granted more and more units would turn sick. Synthetic cloth producers want switch over of the duty from fabrics to yarn stage.Two Bangalore traders failed to make payments of about Rs 75 crore.

Some of the prices quoted on the Wulji detha cloth market were: Grey calendared No. 225 84 cmt at Rs 14.45; bleached poplin Red Ross 86 cms at Rs 13.95, bleached long cloth Nehrupark 89 cms at Rs 13.35; bleached long cloth Nehrupark 132 cms at Rs 18.45, dyed poplin rang birangi 89 cms at Rs 14.30; grey calendared Japan Tiger 105 cms at Rs 17.35; bleached mulls Fancy Queen 110 cms at Rs 12.40; bleached sheeting Hira Moti 132 cms at Rs 29; dyed sheeting Bechhona 132 cms at Rs 28.90; pigment print Priyadarshini 150 cms at Rs 38 and grey uncalendered 1965 190 cms at Rs 34.90 per metre.