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Cotton Control Goes

August 12, 1967 tation, in financial and technical management, during the last thirteen years. Two other changes are necessary to ensure inter-unit harmony in industry: Firstly, once the car output increases, it would be necessary to reduce car costs and prices. For this it is necessary to introduce a clear system of differential original equipment and replacement market pricing. The object should be that all o e supplies should more or less be charged at prime cost pricing, and all replacement supplies (sold by the main producer or the ancillary manufacturer) should be priced to cover overheads and profits; all oe supplies should be made available at prices between 30 and 50 per cent of the replacement sales.

Groundnut Oil Fall Arrested

could not. New Delhi is still toying with the idea (or is it just a political stunt?) of freezing prices, wages, profits and dividends, but prices of agricultural commodities have already developed an easier tendency under the influence of favourable weather. One really wonders whether the Government should at all be seriously considering a plan to contain inflationary pressures when recessionary trends are in evidence in several areas of the economy and the highly satisfactory progress of monsoon holds out the hope of a good agricultural season. Could it be that New Delhi is preparing an emergency plan to be implemented only in the event of another drought?

Control or Decontrol

ONLY the Government has now to make up its mind. The expert group has unanimously recommended decontrol of cotton with certain safeguards for preventing a runaway rise in prices and substitution of floor prices by suitable support prices. It has also recommended that the percentage of controlled varieties of cloth should be reduced from 40 per cent to 25 per cent and that the realisation multipliers be suitably revised once immediately and again in January. The expert group's recommendations are, in fact, no more than a restatement of the case which the industry, trade and growers have been pleading vigorously for a long time. But this should cause no surprise because the expert group comprised only the trusted men of industry, trade and growers.

No Cotton Policy Yet

No Cotton Policy Yet THE working group of experts has still to submit its report on whether or not to retain the price control on cotton for the new season beginning with September. But it seems rather unlikely that the experts wil favour control when the Agricultural Prices Commission has recommended the abolition of ceiling prices, and all other interests

Dalal Street at New Low

 AFTER struggling hard for little over a month to put up a steady show, Dalai Street last week gave in under the strain of political and economic tensions which have been growing with time. Equities have declined further under bear pressure and considerable nervous bull liquidation, and the market has sunk to an altogether new low for the year. Apart from disturbing signs of recession in quite a few important industries, confidence has been further undermined by the prospect of a freeze on prices, wages, profits and dividends which was discussed at the recent meeting in New Delhi of the State Chief Ministers. Morarji Desai is reported to have expressed his readiness to examine the feasibility of such a freeze. And the stock market simply dreads profit and dividend freeze for the very obvious reason that corporate profits and dividends are the two major factors influencing the outlook for equities.

Cotton Boom Petering Out

COTTON prices have suffered an all-round decline, ranging between Rs 35 and Rs 75 a candy, over the past week or so. However, this does not bring the prices anywhere near their statutory ceilings; it is only the unofficial premiums that have come down. However, the current decline might well mark the beginning of the end of the boom which had carried prices to fantastic levels. The so-called 'vigorous requisitioning' by the Textile Commissioner has hardly anything to do with the recent setback in cotton prices. The total quantity of cotton requisition- ed so far

Cotton Yields Must Be Raised

Cotton Yields Must Be Raised THE ONSET of the monsoon has not had even the slightest impact on the cotton market where prices continue to hold remarkably firm around their all-time high levels. This is scarcely surprising with all attention being focussed on the prevailing acute shortage. The industry is, in fact, talking about en bloc closure of mills for a month or sc in September/October as there might not be enough cotton left at the end of the current season to carry the mills through till the new season's crop moves into the market and becomes available for consumption. The Commerce Minister is reported to have held out the assurance that the Government would try to arrange larger imports of cotton on an emergency' basis in order to help the industry tide over the difficult situation. Already, as things stand, imports during the current season will be much larger than during 1965-66. By the end of May imports were 5.7 lakh bales, whereas the total quantity imported during 1965- 66 was only 4.87 lakh bales. In any case, it is very clear that, if the carry-over on August 31 happens to be smaller than at the beginning of the season, it will be because of larger mill consumption during 1966- 67, the compulsory holiday (once a week from December 12 to April 9 and once a fortnight thereafter) notwithstanding. The larger consumption is attributable to expansion of spindleage capacity.

Whither Cotton Prices

 gees, the set Arab answer is that they will all go back to their homes in Palestine. After twenty years this answer is unrealistic and only helps to fan smouldering fires. The refugees must be given the chance, fairly and squarely, to rehabilitate themselves. Here the Arabs must give up their unyielding attitude and Israel be as generous as possible. Those of the refugees who are willing to go back into Israel and can be given back their old properties must be given back their old properties restored, Those who do not wish to go back or whose properties cannot be returned must be fully compensated.

STOCK EXCHANGE- Gloomy Looks

of essential edible oils because of the high prices; the average consumption of vegetable fats is already substantially below the nutritional standards. How for the prices might decline will depend oh the progress of the unpredictable mon. soon. It 'is much too early to say anything on this matter right now. As it is, the monsoon is a little late in most places though the delly does not still matter very much. While a timely onset of monsoon is , important for sowing purposes, even more crucial for the final outturn of the crop is the behaviour of the monsoon during September and October.

OILSEEDS- Prices Recede

 gees, the set Arab answer is that they will all go back to their homes in Palestine. After twenty years this answer is unrealistic and only helps to fan smouldering fires. The refugees must be given the chance, fairly and squarely, to rehabilitate themselves. Here the Arabs must give up their unyielding attitude and Israel be as generous as possible. Those of the refugees who are willing to go back into Israel and can be given back their old properties must be given back their old properties restored, Those who do not wish to go back or whose properties cannot be returned must be fully compensated.

The Cotton Muddle

The Cotton Muddle THE demand for cotton is derived from the demand for cloth. But strange as it might appear, while cloth is not in short supply cotton is. And the shortage is real. The 1966-67 crop, of around 53/54 lakhs bales, is not any better than the previous season's harvest

STOCK EXCHANGE-Budget Disappoints

for many years. A year ago, on the eve of devaluation, linseed oil was quoted around Rs 3,000 and cantor oil around Rs 2,500. Groundnut "oil had shot up from Rs 4,500 in June last to Rs 5,575 by August, but it is down again around Rs 4,500 per tonne, thanks to large imports of edible oils. , Not very many years ago, India was an important exporter of vege table oils and its groundnut oil and castor oil figured prominently in world markets. But today the country is a net importer of oils, Production of vegetable oils has con- tinued to lag far behind the country's expanding requirements and the gap between supply and demand is reflected in the persistent rise in oilseeds and oil prices in the country. How high Indian prices have risen will be evident from the fact that, against the world price of

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