Articles by Nishtar

The Million Bale 'Discrepancy' Nishtar WHAT are the cotton crop prospects for 1970-71? Not "very rosy", says- Captain Ranjit Singh, chairman of Indian Cotton Development Council. Unfortunately, the impression one gathers from the very brief account he has given of the crop is that the prospect is not only not "very rosy" but it is rather bleak. The supply of irrigation water in the canal irrigated States of Punjab, Haryana and Rajasthan was ''somewhat irregular and inadequate" at the optimum sowing time of cotton with the result that not only was there a slight shrinkage in area but more than 50 per cent of. the crop was also sown late which usually diminishes the yield, Gujarat had again the misfortune of falling victim to heavy rains and floods and the cotton crop over an area of some 75,000 hectares in the State lias been "totally destroyed" while the growth and productivity of the crop have been impaired in some more areas. In Maharashtra also excessive rains havedamaged both the irrigated and rainfed crops in several tracts and the continuous wet weather is said to have given rise to severe infestation of pests like boll-worms which are difficult to control even with the most potent chemicals available.

Mockery of Ban on Forward Trading Nishtar UNDAUNTED by the hazards of space travel, the stock market continues to move higher and higher to a destination unknown. The 1969 peak has been left far behind. The current bullish fervour is reminiscent of the boom last year which attracted Government's wrath. With forward trading officially 'banned, New Delhi is in no position to point an accusing finger at speculators. But it is surprising that it should have turned a blind eye to the illicit forward trading that is going on under the in- genious 10-day settlement system. The unrestricted freedom to trade for differences had made a mockery of the ban on forward trading.

agreement with American Can Company are hearing fruit. We have received a Letter of Intent from the Government, agreeing to the broad terms of the proposed collaboration, and we are now in the process of clarifying certain details, before concluding the matter.

Not to Reason Why Nishtar STOCK markets are no longer bothered about Government permission to resume forward trading. They have found a way out. As is usual in such matters, the more speculative Dalai Street has given the lead with its ingenious 10- day settlement scheme. It should not be long before other markets fall in line. Under Bombay's scheme, one can buy or sell freely and delivery can be taken or given. All the outstanding business has to be squared up by the close of the settlement day; but if buyers and sellers can come to an understanding to keep their business alive, the market authorities are not to take any notice of it. One could say that this is no forward trading, it is pure gambling. But except for some respectability that goes with these words, there is perhaps very little to choose between gambling and speculation. It is amazing that the market authorities should have waited for more than 13 months and allowed their members to live on a starvation diet. Quite possibly' left to themselves, the market authorities would not have liked to resort to this not-so-desirable step. But they could not resist the mounting pressure from the stock exchange fraternity for resumption of forward trading. Having failed to persuade Government to lift the ban, the market authorities decided to go ahead on their own and relax the trading rules with a view to facilitate buying and selling for differences.

Scarcity-Induced Boom Nishtar ENCOURAGING corporate news, return flow of large funds released from the recent new issues which were heavily oversubscribed, paucity of good scrips and fairly large institutional support for select counters have led to an all-round impressive rise in equity prices. And surprisingly enough, it is the slow-moving bank shares which have scored the most spectacular gains. Within a week, Bank of India rose from Rs 94 to Rs 121, Baroda from Rs 83 to Rs 103, Central from Rs 57 to Rs 75 and United Commercial from Rs 92 to Rs 115. Never before have bank shares been known to have recorded such a steep rise in so short a time. The spurt was due as much, if not more, to scarcity of offerings as to fresh support induced mainly by the proposal of Central Bank of India Ltd to merge itself with Tata Engineering and Locomotive Company; it was felt that the other residual banking companies would follow the Central's lead. One wonders whether the buying in bank shares was based on any thoughtful assessment of the possible benefits in the event of a merger. And one cannot take it for granted that the schemes of amalgamation, which might have to be referred to the Monopolies Commission, would be cleared by the Commission.