ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Sharp Break

February 14, 1970 of cotton. This will raise current season's imports to a record 10 lakh bales. But neither the tightening of credit curbs nor the prospect of substantially larger imports has had any significant impact on the market. Prices have continued to surge forward and most varieties have struck altogether new highs. The market's behaviour is suggestive of a serious cotton famine in the country. From Surendranagar came reports that the standing crop of this region has completely withered clue to insufficient rains and that plants have had to be uprooted. It is said that this district's crop this season will be only around 90,000 bales against a normal harvest of some 4 lakh bales. Little wonder that the Wagad 'kapas' hedge contract, which had touched a low of Rs 105 a quintal earlier in the season, should have been rigged up by speculators to Rs 210 last week. This is an unprecedented rise and it is really amazing that the Forward Markets Commission should have remained a silent spectator. The behaviour of the Deshi hedge contract in Bhatinda has been only a little less disturbing. With futures trading in cotton banned, permission to allow hedge trading in 'kapas' (unginned cotton) can be justified only on the ground that logic has rarely been the Forward Markets Commission's strong point.

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