In view of the cold wave in North India, Delhi and other centres reported good demand for woolen varieties like blankets and sweaters. At the same time, demand for costly sarees, shirtings and suitings was low because of the absence of marriages due to Sankranti. The marriage season would be in full swing after January 14.
Activity has been very dull even during the demand season, and they have been hit hard financially as outstanding payments, too, have been delayed.
Reports from upcountry centres indicated a slowdown in demand due to cold or rains. Delhi reported demand for woolen varieties, while demand for sarees, suitings and shirtings dropped. Reports from Ujjain, Gwalior and Indore indicated poor activity. The demand for Christmas and Pongal had failed to meet market expectations. Even purchases for the marriage season were below normal.
Cotton: A firm tendency in Punjab cotton provided the main feature of trading on the Mumbai cotton market last week. Gujarat cotton, after an initial firmness, lacked demand and eased slightly. South Indian super-fine cotton like DCH-32 flared up as production in Karnataka had been affected. Madhya Pradesh cotton was also in demand.
The sentiment was better but still lacked demand from mills. Their tight position has forced mills not to go for higher inventory levels. They lifted cotton only for immediate consumption.
It was indicated that traders and ginners refrained from giving cotton to mills on long credit. According to reports from Gujarat, ginners are yet to receive about Rs 200 crore from South-based mills. They had been lured into selling cotton at high prices but now their money has been locked. Consequently, Gujarat ginners and traders refrained from offering cotton to these units.
The inflow in Punjab and other producing states had been below normal. They point out that in the case of Punjab, the inflow had hardly reached 20,000 bales as against the inflow of 25,000-27,000 bales during the same period last year. Hence, their contention is that the Punjab crop would turn out to be lower than estimated.
Bengal desi was in demand at the higher level of Rs 1,350-1,385 per Bengal maund. At the same time, saw gin was demanded slightly higher at Rs 17,80-1,880 per Bengal maund. The inflow was limited in F-414 which fetched Rs 2,025-2.050. Gujarat Shankar-four rose to Rs 19,000-20,500, but later receded to Rs 19,000-20,3250 per candy. Madhya Pradesh Y-1 was in demand at Rs 17,500-18,000 and H-4 at Rs 18,750-19,000 per candy.
