There has been a further deterioration in the trading activity in the Mumbai cloth market last week. Reports from upcountry centres were also discouraging. In the midst of the brisk demand season traders were having no transactions noted for three to four days in succession. Thus, there is a growing worry over the piling up of stocks.
Besides, with the approaching election it would be difficult to have good demand. Even the demand for Id had been well below normal and scattered buying was reported only at upcountry centres. Traders are particularly worried about the entry of imported readymade garments. The Union government had, during the last year end, permitted imports of some of the cloth items under open general licensing system.
The goods have already reached the Mumbai port. This will create a further drop in the demand for indigenous supplies. According to reports doing the rounds, about 4 per cent of the looms in Bhiwandi and Ulhasnagar have closed down while production in Meerut has dropped to 4 per cent. In view of the cold season Indore table printing activity has also come to a halt. At the same time, Jodhpur reported good progress.
Activity in the Mulji Jetha cloth market had been at a very low ebb. The absence of upcountry buyers has perturbed the traders who are having heavy stocks with them. Despite the start of the election process the expected demand for cheap longcloth and grey varieties have been poor. So also the demand for sarees, suiting and shirting in the midst of the marriage season. Summer-fine and super-fine varieties also stand neglected.
The demand for woollen varieties have dried up and even at upcountry centres demand has been diverted to the retail level.
Cotton: A firm tendency was noticed on the Mumbai cotton market last week. However, with the absence of buying by mills at higher levels, prices receded at the fag end of the week.
The hike in the prices by the Maharashtra Federation to the extent of Rs 1,000 to Rs 1,500 per candy along with the lower crop estimates, imparted firmness in the market. . On the whole the Punjab prices have been higher by about Rs 40-50 per Bengal maund and Gujarat-Madhya Pradesh by Rs 300-500 per candy.
With the estimate of 160 lakh bales production, traders, co-operatives and government agencies were active.
Mills, too, are worried about the availability of supplies later in the season and now the South Indian millers have urged the Centre to stop further rise in cotton prices.
Arrivals in Punjab are still below normal, resulting in the prices firming up. Bengal Deshi shot up to Rs 1,550-1,585 but later eased to Rs 1,525-1,550 per Bengal maund. Saw gin, after rising to Rs 2,025-2,125 eased to Rs 2,035-2,075 and F-414 at Rs 2,200-2,220 per Bengal maund. In Gujarat, Shankar-4 prices went up to the high of Rs 21,500-22,750 but was later offered at Rs 21,000-22,000 per candy.
Madhya Pradesh Y-1 ruled at Rs 19,000-19,250 and MECH at Rs 21,500-221,750 per candy.
