Articles by D P Sharma

UTI Stays Ahead D P Sharma THE Unit Trust of India has performed exceedingly well during 1991-92 (July- June), lb say that it set new records would be saying precious little as that would signify only a repeat performance of earlier years. But this year's performance leaves all past achievements far behind, registering remarkable growth in all major areas of its operations

driblets under IMF/World Bank assistance programmes did not add up to much. The report makes a significant reference to a turnaround of $ 7.6 billion in the net purchases of foreign exchange during 1991-92 as against sizeable net sales in the previous year.

Recession in Textile Industry D P Sharma THE cotton and textile scenario presents a curious blend of many odd elements. A meaningful assessment of the apparently complex scene calls for a proper perception of the link between the two distinct segments of the cotton and textile scene. The demand for cotton is derived from the demand for yarn and cloth. The state of the textile industry therefore has an important bearing on the behaviour of cotton prices. But since cotton itself constitutes a major element in the cost of pro- duction of yarn and cloth, fluctuations in cotton prices have a significant impact on the fortunes of the textile industry. It is simply not possible to make a proper appraisal of the situation obtaining in the cotton market unless one bears in mind the salient aspects of the textile scenario.

ICMF's Ploy Misfires D P Sharma THE way the cotton scenario has unfold- ed this season makes an interesting study which underlines the imperative need for a more careful and objective assessment of the supply-demand position to enable the formulation of appropriate policy inputs to subserve diverse interests. The situ- tion obtaining at a time when the season has only a little over three months more to go contrasts sharply with that which prevailed at the beginning of the season in that the market which had not witnessed the normal seasonal decline in the wake of the progress of the marketing season is currently witnessing a contra- seasonal decline. Mills which had figured as avid buyers at asked-for prices earlier are now reluctant to take up cotton on offer at substantially lower prices. Barring a few isolated instances, cotton prices have moved down by 4.3 per cent to 15,7 per cent (depending on the variety) from their February highs which are not much lower than the prices ruling at the beginning of the season. Only quality cottons from the northern region have been displaying a steadier tendency over the past few weeks. However, the decline of Rs 600 to Rs 2,000 per candy from the February highs, carrying most varieties to below the half-way marks between the season's highs and subsequent lows, when over 113 lakh bales of cotton have moved into the market provides little indication of the gravity of the situation. There are virtually no takers for cotton even at the reduced prices. Payments against deliveries are being inordinately delayed. Institutional TABLE; COTTON BALANCE-SHEET FOR 1991-92 (In lakh bates) agencies are being obliged to carry large stocks of cotton 'sold but not lifted'.

Rabi Crop to the Rescue D P Sharma THE performance of the oilseeds sector of the economy during the current season so far can be described as fairly satisfactory both in regard to the availability of edible oils at prices which could be termed as reasonable, especially when viewed in the context of the general inflationary environment, and the contribution to the nation's precious foreign exchange pool. The current season is half way through and the market is not experiencing any shortage of supplies. During the past four months edible oil prices which have had their usual ups and downs have not moved beyond their earlier highs which reflected largely the impact of the partial failure of the kharif groundnut crop in Saurashtra. Some oils registered their highs about the beginning of November and others in early January. Prices have come down from their highs by 5 to 19 per cent, varying with the oil. While the ruling prices (May 2) are 4 to 8 per cent nig her than a year ages the increase is much smaller when compared with the increase in the official wholesale prices index on a point-to-point basis. (For details see the accompanying table.) Viewed in the light of the supply-demand gap officially reckoned at over 7 lakh tonnes, the relative stability in edible oil prices is significant, It is attributable partly to improved indigenous availability in the wake of record rabi oilseeds production and consumer resistance at higher levels. Intra- seasonal fluctuations in edible oil prices have tended to narrow down following the increase in the share of rabi oilseeds (mostly edible) in the aggregate supply. Going by the estimates put up at the 13th all-India seminar on rabi oilseeds held at Jaipur on March 29, rabi oilseeds production this season has been reckoned at a record 108 lakh tonnes, .12.5 per cent up over the previous season's estimate of 96 lakh tonnes The crop-wise figures in lakh tonnes with previous season's figures in bracket ait: mustard/rapeseed/toria 66 (60.5), groundnut in shell 25.5 (22.5). sunflower 7 (4), sesame 2 (2), safflower 4 (3 5) and linseed 3.5 (3.5). Including kharif production of 87 lakh tonnes (94 lakh tonnes) the total production of nine cultivated oilseeds comes to 195 lakh tonnes against 190 lakh tonnes in 1990-91. Officially, however, oilseeds production in 1990-91 has been finally placed at 184.64 lakh tonnes, With imports of edible oils restricted to less than two lakh tonnes and quantities routed through the public distribution system grossly inadequate, consumers would not have experienced even a modicum of relief if production of rabi oilseeds