PRICES of some essential items on the Karachi wholesale market last week showed fresh increases on reports of a considerable decline in arrivals from the upcountry trading centres. The other factor was the reports of holding back of stocks by some leading importers.
Pulses again went up under the lead of moong and some other varieties as a section of consumers made panic buying on fears of further price escalation. There were scanty hopes of improvement in supplies.
Dealers said pulses were following sugar as speculative forces and some commodity traders were cornering ready stocks to sell it at higher rates after creating artificial shortage.
“In the absence of strict price monitoring on wholesale markets to resolve the sugar crisis, some leading traders were said to be setting the trend as they were regulating supply and demand in the open market”, they added.
Owing to a flare-up in sugar and pulses rates - the two leading among essential items - the market witnessed a sympathetic increase on other counters as supplies did not show much improvement.
Sugar ruled on the higher side despite fixation of selling prices at the retailers’ end for Rs33.35 per kilo. The benefit was still to reach general consumers as the open market stayed on higher side due to variation in rates from one area to another.
Meanwhile, two ships, one carrying raw sugar arrived at the Karachi port. However, even those two consignments failed in pulling the prices down to officially fixed rates.
But the market sources hope of abatement in prices from the current high levels once the imported stuff and the supplies from mills at ex-factory rates reach the market during next couple of weeks.
Rice remained stable around previous levels despite steady physical shipments of the commodity to foreign countries against forward deals. It did not follow the trend of sugar and pulses.
Wheat showed a modest rise followed by reports of a short crop as the targeted production of 22 million tons was lowered to 20 million plus tons. But on the other hand, the talk of re-export of imported surplus appeared inconclusive, apparently on the export duty issue.
Pulses led the market advance as prices rose further up as pressure on supplies continued.
The largest rise was again noted in moong, which rose by Rs250, followed by others varieties, some of which eased at the weekend session on selling. Gram dal and masoor dal were leading among them which fell by Rs50 and 300 per bag. Others were held at the previous peak levels.
New crop of wheat from Sindh markets arrived during the week and was quoted well below the old crop, indicating further decline in prices after the new crop arrivals gathered momentum.
Sugar stayed on the higher side as supplies from mills to the Trading Corporation of Pakistan (TCP) at the officially fixed rate did not reach. Sugar mills will supply the commodity to the TCP at Rs29.55, while the TCP will sell it to retailers at Rs33.35 per kilo.
Dealers said that the price situation of sugar was expected to ease once mills release fresh stock to retail outlets through the official utility stores network.
Rice prices generally remained stable around previous levels as supplies matched the local demand. IRRI-9 was an exception, which rose by Rs50 per bag, while IRRI-6 broken fell by Rs10.00 on late selling.
Physical shipments of the commodity against forward deals were maintained according to schedules as a rice loader remained in the port loading the consignments.
Some industrial raw material also showed modest rise followed by reports of holding back of stocks by the stockists in upper Sindh markets. Guarseed was notable among them which rose by Rs25.
Cereals also showed a modest rise under the lead of bajra which rose by Rs50 to 75 per bag on active support extended by retailers while maize and barley were traded at previous levels.
Barring some types of rapeseed, which rose modestly on reports of firm oil and cakes market and slow arrivals of new crop from the Sindh markets, other major seeds including cottonseed, castorseed and til were held unchanged at previous levels.
Oilcakes stayed unchanged for rapeseed cakes, while cottonseed cakes rose by Rs30 on short supply from the Sindh markets and active local demand.—M.A.
PRICES of some essential items on the Karachi wholesale market last week showed fresh increases on reports of a considerable decline in arrivals from the upcountry trading centres. The other factor was the reports of holding back of stocks by some leading importers.
