Local cotton traders in tune with global markets thru internet

09 Jan '06

3 min read

A cotton trader in Surendranagar, a little town in Gujarat, sorts through his e-mails to see if an analyst has sent a note on the reasons for the price movement of cotton on the exchange and any suggestions as to what to buy and when to sell.

At around the same time, farmers and traders of cumin, castor and potato in nearby towns of Unjha, Deesa and Palanpur are studying global price trends in their respective commodities on their computers.

Technology is bringing about a sea change in the way business is done in villages in India, especially as commodities trading become a rage. “Information like changes in tax structure and their impact on traders help us to get an insight into the US and other big Asian markets, including that of China,” said Bhaweshbhai Doshi, a Surendranagar-based cotton trader, who's got a dial-up connection at home.

Internet services are becoming cheaper. What's more, Mr Doshi gets all the services from analysts free of cost. The report is sent to the traders by various agencies as soon as the exchange in the US closes.

Since the price movement in these exchange affect the prices in the local market, these analyses and price movement charts are in much demand even in these small trading centres.

The analysis on cotton trading benefits over 100 site holders in the district, who undertake bulk trading of the cash crop. The district of Surendranagar is one of the highest cotton producing regions in India,and last year the prices of cotton had gone down markedly due to a demand-supply mismatch.

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