Mumbai, Dec 16: In a major policy decision favouring the cotton growers on the eve of the parliament elections the Maharashtra government is understood to have decided to reduce the quality grades for kapas for procuremnt purposes and advance the payment time even as it kept the procurement prices unchanged. Meanwhile, the cotton market ruled quietly steady.

Following the state government decision, the Maharashtra federation has done away with the hitherto five quality grades and fixed only two grade for kapas for procurment purposes. Besides, it has also decided to make the payment in a week's time. However, the procurement prices have been pegged at the prevailing levels.

The cotton market remained more or less static following very sluggish mill demand and steady pressue of arrivals. Inflow in Punjab zone was around 20,000 bales.

Meanwhile, the East India Cotton Association (EICA) has estimated the cotton production for the current season at 166.25 lakh bales of 170 kgs (158.25 in bales form plus 8 lakh bales loose). This, together with the the carryover of 25.43 lakh bales from the previous season, would bring the total availability to 191.68 lakh bales.

The total outgo is estimated at 174.68 bales, consisting of 150 lakh mill consumption, 9 lakh bales non-mill needs, 7 lakh mills small spinners requirements and 8.18 lakh exports, leaving a balance of 17 lakh bales at the end of the season.

The statewise prodcution estimates are: Punjab, Haryan, Rajasthan 32.5, Gujarat 38 lakh, Maharashtra 28, MP 19, Karnataka 8.75, Andhara Pradesh 25, Tamil Nadu 6.25 and others 1 lakh bales.

Sugar weak

A dull-to-weak trend continued on the sugar market following slack demand and rumour of higher free sale quota.

Ex-godown prices were down by Rs 10 a quintal on sluggish demand. M-30 were placed at Rs 1485-1525 and S-30 at Rs 1460-1480. Ex-octroi checkpost, M-30 at Rs 1470-1480 and S-30 at Rs 1450-1465 were static.

Imported sugar were unchanged as Brazilian were on offer at Rs 1355 and South African at Rs 1385.

In tenders also the price was bereft of any change as S-30 were indicated at Rs 1415-1425.

Grains steady

A quietly steady trend was noticed in wheat and rice on the grains market. Activity was restricted. Undertone in imported pulses remained firm due to weak rupee against dollar.

Wheat MP 147 and Sarbati ruled at Rs 750-900 and at Rs 1000-1300 a quintal respectively. Gujarat wheat were on offer at Rs 711-825 and Ganaganagar at Rs 790-850.

Rice Permal average and superior were traded at Rs 875-900 and at Rs 1075-1100 respectively. SLO ruled at Rs 925-950.

Yarn dull

A quietly steady condition continued on the yarn market.

Viscose filament yarn bright cones first quality Century Rayon 150dn ruled at Rs 223, 120dn at Rs 243, 100dn at Rs 264 and 75dn at Rs 267 a kg.

Nylon yarn 15/1/0dn JK and 20/1/0dn Gujnil were on offer at Rs 265 and at Rs 240 respectively.

Bullion divergent

Silver prices reacted while gold improved further on the bullion market today.

Ready silver of .999 fineness, raw silver of .916 fineness and tenderable silver declined by Rs 25 each to close at Rs 8135, Rs 8035 and Rs 8140 from the last close of Rs 8160, Rs 8060 and Rs 8165 respectively on weak overseas advices.

On the other hand, standard gold, after a steady start, improved to close at Rs 3925, showing a small gain of Rs 5 over the last close of Rs 3920. 22-carat gold was nominally quoted better at Rs 3630 from Rs 3625. Ten-tola gold bar of .999 purity, however held steady at Rs 45,900. G'nut oil reactsPrices of groundnut oil turned easy while castor oil and castorseed also finished weak on the oilseeds market here today. However, linseed oil prices rose further on increased paint industries' offtake.

In the edible section, groundnut oil prices fell by Rs 3 to settle at Rs 348 from Rs 351 on lack of buying support coupled with good arrivals, traders said. Groundnut bold held steady at Rs 1900 on stray support. Palm oil also remained unchanged at Rs 279.

In the non-edible section, castor oil commercial at Rs 279 and castorseed Madras at Rs 1243 also finished weak from Rs 280 and Rs 1248 respectively on lack of soap manufactuers' and exporters' demand. However, linseed oil continued to rise on increased demand and closed Rs 3 higher at Rs 308 from Rs 305 yesterday. Linseed bold remained steady at Rs 1300.

In the futures market, castorseed March contract opened better at Rs 1168.50 and after moving in narrow range between Rs 1168.50 and Rs 1166.50, closed at Rs 1166.50, showing no change from the last close. Nickel ralliesPrices of nickel rallied while copper and brass prices fell on the non-ferrous metals here today.

Nickel prices rose by Rs 4 per kg to settle at Rs 335 on good industrial demand coupled with better overseas advices, traders said.

However, copper scrap heavy at Rs 108, copper wire bar at Rs 119, copper utensils at Rs 96, brass scrap at Rs 83 and brass sheets cutting at Rs 89.25 finished weak on poor London Metals Exchange advices.

Delhi

Silver suffered a setback of Rs 100 while gold recorded a gain of Rs 15-20 on the Delhi bullion market on Tuesday.

Despite negligible inflow of imported silver on Monday, spot silver .999 tumbled down by Rs 100 at Rs 7950 a kg because of lack of demand from local as well as upcountry buyers and silver weekly delivery remained subdued at Rs 7760 a kg.

According to traders, as compared to Friday, New York silver future looked upto 593 cents from 590 cents an ounce, but at noon, silver in Hong-Kong was quoted at 602 cents an ounce. Demand in silver was also reported dull.

Silver coins also suffered a setback of Rs 100 at Rs 11,100-11,200 per 100 pieces.

Gold in London remained subdued at $284 an ounce, but in the absence of fresh inflow, standard mint gold edged up by Rs 15 at Rs 4035 per 10 gram.Gold sovereign held steady at Rs 3575-3600 per 8 gram.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.