Himalayan Times (1954)

Ten

December 5, 19j4

the wool trade

(Goyiinued frjm page 8)
prices and the mills began
to use a larger admixture
of substitutes. There wan
change in position during

1951- 52 and the activities
by the mills continued at
a reduced rate and the
wool consumption fell 10%
below current production.
However, theret was some
healthy improvement in
wool textile activity during

1952- 53 and this has been
described by the U. N.
Food and Agricultural Or-
ganization in its report.
In .1952-53 the recession
gave way to gradual re-
covery. The textile stocks
having been worked down
to norma! levels, home

rand export demand im-
proved. Confidence in wool
prices also recovered.
Governmental pri^e sup-
port operations in th>
U. S. and stratgic stock
'purchasing by the U. K.
also contributed to this.
There was also the fact that
wool price* had receded to
their pre-Korean relation-
ship and with prices for
synthetics.

The proportion of virgin
wool used by the major
wool , textile industries in-
creased significantly in
1952 after the s-jt-back
of the two preceeding years
from' 68j% in the 1st
quarter of 1950, it fell
continuously to 57% in
the 3rd quarter of 1951
■ and then rose to CGj%
in the fir^t quarter 1953.

It ^ould be pointed out
that the world wool pro.
duction has gradally ex-
panded throughout the
postwar period This has
been mainly attributed
to British Commonwealth
countries in the southern
hemisher.'. There has been
some decline in South
American production From
th*1 exception of the high
levels reached tit the end
of the world war, the
postwar decline in North
American production has
been proportionately large.
But in recent years there
efi»m8 to be some signs
rtf recovery in these areas.
So far a» Europe and the
Soviet Union are concern
ed the postwar trends
has- been upwards So far
as the present world wool
situation is concerned, it
is satisfactory to learn
that production and con-
sumption are approxi-
mately in line and slowlv
rising. It is also hearting
to find that stock move-
ments in wool producing
and consuming countries
have tented to equalise.
This is bound to have a
stabilising effect on prices.
Tt is expected that under
favourable economic con-
ditions recovery in the
wool textile industry is
likely to con'inue with
price on a sample basis;
manufacturers will be more
inclined to increase their
usage of wool and to
extend their operations. It
is interesting to find that

the average rate of increase
in wool production has
been about 3% for the
pa'st 5 seasons It is very
important to know that
expansion depends on
many uncertain factors
and it is highly susceptible
to weather conditions So
far as the problem of
future prices is cone rned
over the longer term wool
prices will be effected by
advances in technology
and falling costs of ma:;
made, fibres. Exceedingly
high prices of wool in rt-
cent years have provided
an opportunity for the
usace of such fibres in
produts formerly manu-
factured from wool. Ob
viously the exttnt to
which this will continue
largely depends upon the
quality .of such fibres and
their ability to replace
wool.__

sikkim letter

{Continued from page 6)
pony tracks and 156 miles
of village roads, with all
the necessary bridges
thereon, in course of
the next seven years.
Construction of an aerial
Itopeway linking up Gang-
tok with Theguk, a dis-
tance of 15 miles on the
Tibetan frontier, is also
under the consideration of
the Sikkim Darbar. As a
modest beginning the cons-
truction of six miles of
truck roads on the Melli
Naya Bazar section and a
number of village roads
have aheadv been started.