Login ID:
Password:
Partner Login
Contact Us : 07666977977

DeMote Impact: Five Weeks Into Currency Ban Textile Makers Losing Interest

14 Dec 2016 4:14 pm
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

MUMBAI (Commoditiescontrol) – It has been a little more than five weeks into demonetization and respite not on the horizon, textile makers in major hubs of Ludhiana and Coimbatore are fast losing interest of doing business anymore this year. The most important winter and marriage seasons will almost pass away by the time things get back to normal.

Many traders, with whom CommoditiesControl spoke to, echoed disappointment in varying depth. They commonly said, without adequate cash it is difficult to conduct business as labourers are quitting, raw material and other inputs buying is difficult and moreover, many who can deliver goods fear default or delays in receivable.

Said Sharma, “My stock was dispatched on November 2 (a week before the currency ban announcement) and payment was promised within one week. However, till date I haven’t received my payment,” understanding the plight of his regular buyers. Majority of traders, like Sharma, are scared to transact anticipating delay in receiving payments, which can derail business cycle.

Even mills and powerlooms working on cashless transactions, fear payment delays since the last point of sale, the retail business, is 95 per cent cash based. And retailers feeling the heat of demand compression, are ending up holding huge stock of goods for sale. This is the situation at all every stage where goods change hands.

With this in view, mills and powerlooms in Coimbatore are shutting down and trading has come to standstill. Prices are being quoted and only need based looms are purchasing to continue their operations.

Pranay of Ludhiana said volumes have declined 50 per cent and most knitters have shut down operations. The situation is unlikely to improve soon he believes. Old stocks are brought out for sale since no one is interested in purchasing new stock. Buyers now, who were strict on delivery deadlines, no longer care for deadline and do not mind delivery at later dates than the deadline. Prices are just quoted, but no deal is concluded even at lower than quoted price as retail demand is almost void.

Thus, it appears that textiles makers could not reap the benefits of ongoing seasonal demand and will see their balance sheet in red, hoping for recovering current losses in the next season.

(By Commoditiescontrol Bureau; +91-22-40015522)


       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Latest Special Reports
Cotton Weekly: Mill Fixation Pushes ICE May To More Tha...
Technical: Cotton Seed Kadi : Correction Movement In Pr...
Technical: Cotton Bales Rajkot- Profit Booking Could Be...
DJ Commodities Corner: No Soft Landing for Cotton -- Ba...
Weekly: Long Liquidation Caps Gains In Indian Cotton Fu...
more
Top 5 News
Indian Edible Oil Outlook Uncertain Next Week
Cotton Weekly: Mill Fixation Pushes ICE May To More Tha...
Weekly: Cumin, Chilli & Pepper Decline; But Coriander, ...
Indian Mustard Seed Market Likely To Trade Range Bound ...
Technical: Cotton Seed Kadi : Correction Movement In Pr...
Top 5 Market Commentary
DJ RTAE London Rubber Prices - April 21
*DJ European Metals Holdings Initiated with A$1.68/Shar...
*DJ European Metals Holdings Initiated at Speculative B...
*DJ CORRECT: European Metals Holdings Initiated at Spec...
*DJ Regis Resources Price Target Cut 2.6% to A$3.75/Sha...
Copyright © CC Commodity Info Services LLP. All rights reserved.