Dealers lifted the 2,000 cartons of 50 kg each against cash and sold it at a premium of Rs 10 per kg bringing in Rs 2 crore to the cash-starved Baroda Rayon which has taken a recourse to liquidation of piled-up stocks at concessional rates. The company has also put on sale last week, its huge stocks of 120 dull cones at Rs 50-55 below the market price of Rs 260 per kg, according to market sources.

Efforts were made to find buyers who can lift the stock at a single stroke. Other spinners were taken by surprise by this move. The market absorbed this distress sale by Baroda Rayon without affecting the rates of Century Rayon and Indian Rayon. Baroda Rayon is expected to come out with other deniers of art silk yarn to raise resources.

However, Baroda Rayon officials stoutly denied this and said thiswas a rumour spread by its competitors. The argument that the company had kicked off a selling spree to raise resources is totally false, say company officials. Nevertheless, the company confirmed that it had recently sold 100 and 120 denier yarns at 20 to 40 per cent less than the market price.

The company took this course of action to clear up stock, which had piled up over a period of time to counter any negative impact the budget might have on the sale.