Sparse Demand For Cloth, Cotton Firm

There was little change in the activity on the Mumbai cloth market last week. Only scattered buying was reported at lower levels. Upcountry buyers were making inquiries but were interested in extending commitments only at lower rates.

Under the present circumstances, the cloth market has become a buyer's market and hence sellers had to offer lower rates to dispose off the goods. Both mills and the trade here are having sizable pilling up of stocks and hence also short of funds. At the moment, demand for woollen cloth has already ended. According to reports sellers were keen, even offering these varieties at rates reduced by Rs 30. According to upcountry reports about 500 bales of woollen cloth had been sent back to producers in Ludhiana and Amritsar.

 

Reports in the market say, a prominent suiting unit located at Thane sold suiting in Delhi at 20 per cent reduced prices. Big suiting and shirting producers are already in trouble. Likewise prominent saree manufacturers were also forced to sell sarees below cost. Under the circumstances. Price level in the Mulji Jetha cloth market has been uncertain.

At the same time reports from upcountry centre indicated slow pick up in demand. The demand for grey inferior varieties has been brisk due to elections and prices have gone up. However, the demand for summer-fine and super-fine cotton varieties like mulls, cambric and voiles have yet to start. .

According to trade, the transport activity would stop in February as most of the trucks would be acquired for election work and hence upcountry buyers had to lift the goods immediately for despatch before the transport facility would stop.

Cotton: A distinctly firm tendency was noticed on the Mumbai cotton market last week. In view of the fall in the inflow in Punjab, Gujarat and Madhya Pradesh cotton. Prices firmed up by Rs 20-25 in Punjab varieties and about 200-250 in Gujarat Shankar-4 variety. Madhya Pradesh cotton prices had also gone up on moderate mills demand.

In view of the slow inflow of cotton in Punjab, sellers were reserved demanding higher prices. Activity was more or less confined to co-operative societies and government agencies. In view of likely shortfall in super-fine, cotton mills have been keen lifting more and more Shankar-4 and MECH varieties. The inflow in Gujarat was hampered due to the Sankranti festival and normal supplies would be expected next week. On the other hand, the inflow was well below normal in Punjab.

At the same time, political considerations of vote-getting from the farmers were responsible for the rise in prices in Punjab.

Punjab Bengal deshi was demanded higher at Rs 1,460-1,500, saw gin at Rs 1,925-1,985 and F-414 at Rs 2,080-2,090 per Bengal maund.

Gujarat Shankar-4 inferior was demanded higher at T Rs 21,000-21,500 and superior at Rs 22,000-22,250 per candy. MadyaPradesh. MECH was demanded at Rs 20,500-2,1000 and H-4 at Rs 19,700-20,100 per candy.