A SHARP decline in wheat prices featured the last week’s trading on the Karachi wholesale commodity markets as supply position improved significantly partly owing to larger imports and partly to selling by local stock holders.

On the other hand prices of some other essential items, notably rice rose to new peak on pressure on local supplies in the backdrop of higher exports. The Punjab sela variety rice which came in the local trading board was quoted around Rs7,000 per bag, the highest rate so far on this counter.

The benefit of falling wheat prices could not be passed on to the flour sector where prices are said to be still on the higher side and varied from area to area, brokers said.

Supply of the commodity to mills was fairly steady during the week as another ship carrying over 18,000 tons of wheat arrived and was unloaded swiftly. The position is expected to improve further as the government is taking some administrative measures in coming weeks to check speculative increase in prices.

According to official sources, arrival of half a million tons of the commodity purchased from various countries is expected to be completed shortly.

The fall in wheat prices, however, did not have any sympathetic impact on other essential items, some of which instead showed fresh sharp increase.

Masoor whole and masoor dal, for instance, came in for fresh support and were quoted higher as pressure on supplies continued owing to lower imports during the last couple of weeks.

Rice followed them under the lead of Irri-9, which rose to new peak followed by reports of higher exports and short local supply.

The notable feature was that sela basmati (Punjab type) came on the trading board and was quoted around Rs7,000 per bag, the highest recorded so far on the wholesale market, dealers said.

In the rice sector largest rise of Rs300 per bag was noted in Irri-9, while Irri-6 was quoted modestly higher by Rs5 with fine varieties remaining pegged at the last levels.

There was relative quiet on the sugar front followed by dispute over sugarcane prices. According to reports millers are not paying agreed rate of Rs63 per 40 kg to the growers amid fears that they may stop supply of sugarcane to mills.

Sugar was again quoted lower on reports of foreign sales at $335 per ton to Sri Lanka, and was off by Rs50 and so did sugar desi and gur, which suffered fall ranging from Rs100 to Rs200.

On the other hand, prices of industrial raw materials did not show much change followed by reports of steady arrivals from upcountry markets and comfortable ready position.

Much of the price increases was noted in the pulse sector where the largest rise was noted in masoor whole and dal, which were quoted higher by Rs100 to Rs300 per bag of 100 kg.

Urad followed them, up by Rs125, while gram whole and gram dal were quoted lower by Rs100, whereas moong and mash type lacked normal support.

Among cereals, bajra fell by Rs60 to Rs90 per bag, while maize, jowar and barley were traded at the previous levels followed by reports of steady arrivals. Guar followed them.

Oilseed sector again showed quietly steady trend as prices of major seeds including rapeseed and til were held unchanged, while cottonseed came in for active support and rose by Rs20 to Rs50 per 40 kg. Castor seed was marked down by Rs25 on slack export demand.

Oilcakes rose by Rs40 per 40 kg for rapeseed cakes, while cottonseed cakes were marked down by Rs20 to Rs30 on selling by ginners.—M.A.