Meeting of North India Kraft paper Dealers Association (NIKDA) was held yesterday and once again dealers stick to their decision "no new purchase till 12-04-2010". The unity and bonding is very good. More then 100 dealers joined the forum and agreed that it is essential in the interest of trade to close/stop all purchases.
Although in my opinion under present rate increase scenario, market is flooded with material because dealers & converters, both made panic purchase. They purchased much more quantity then they required. This would help mill owners to increase prices further. But now dealer & converter, have started feeling the shortage of space as well as finance at some places. Converters are not in a position to repay as per agreed terms because they bought excess material then they required, besides due to closing of financial year there is already a financial crunch.
But I firmly believe that this decision is very much beneficial for the PAPER TRADE.
Although in my opinion under present rate increase scenario, market is flooded with material because dealers & converters, both made panic purchase. They purchased much more quantity then they required. This would help mill owners to increase prices further. But now dealer & converter, have started feeling the shortage of space as well as finance at some places. Converters are not in a position to repay as per agreed terms because they bought excess material then they required, besides due to closing of financial year there is already a financial crunch.
But I firmly believe that this decision is very much beneficial for the PAPER TRADE.
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