A FRESH price flare-up in the rice sector highlighted last week’s trading on the Karachi wholesale markets amid reports of short supply and holding back of stocks by the leading commercial houses.

“Despite a record crop of 5.5 million tons the commodity is terribly in short position”, said a dealer adding “what seems to have accentuated the supply position is a higher export, mainly of IRRI and coarse basmati types”.

Never before in the history of rice trading in the wholesale markets, prices of all varieties of rice had touched the current unprecedented higher levels, they said.

Nobody could precisely predict even the near-future price outlook as bulk of the current crop has either been exported or is in the hands of commercial houses.

In some cases, prices of basmati and IRRI varieties were as high as Rs300 to Rs400 per bag of 100 kg having sympathetic bullish impact on other essential items, some others said.

Unlike previous weeks, trading in the pulses’ sector was orderly partly because of fall in demand as a section of retailers did not opt for fresh buying at the inflated levels and partly to a pickup in arrivals of new crop from Sindh markets.

Floor brokers said harvesting of new gram crop had already resumed in Sindh and steady arrivals from upcountry trading centres had a stabilising effect on the ruling prices of other types also.

Some imported types, mainly masoor and masoor dal did not show much change as prices remained steady around the all-time peak levels for the third week in a row, they said.

However, it was satisfying to note that there was not much change in the wheat prices, indicating comfortable ready position as mill demand is being met from official sources.

Moreover, speculative traders who were holding large stocks of the commodity also sold their stock in haste amid fears that the new crop arrivals

from Sindh market could depress prices further, some others said.

Sugar also remained stable but showed a modest decline followed by reports of piling up of unsold stocks. Some among them sold modest quantities on the open market to line funds to clear the dues of growers, they added.

The market advance was again led by pulses sector under the lead of masoor whole, which posted fresh rise of Rs300 to Rs400 per bag, but on the other hand gram whole was quoted lower by Rs50.

All other types were traded at previous levels. Rice sector followed them under the lead of IRRI-9 and IRRI-6, which came in for renewed local demand and were quoted further higher by Rs100 to Rs250 per bag.

Basmati was also traded higher by Rs400 but sela and kernel types were firmly held at the last levels amid slow ready off take owing to higher prices.

But dealers said some exporters were behind the fresh price flare-up in the rice sector who covered their forward sale and the consequent increase in prices.

IRRI broken was, however, an exception, which tended lower by Rs150 to Rs260 per bag on selling by the local commercial houses.

Sugar also came in for modest selling followed by reports of steady arrivals from the sugar mills but ready off take was slow. Gur and desi sugar remained under pressure and were quoted lower by Rs100 to Rs200 per maund.

Among cereals both maize, and guar seeds were marked down by Rs50 to Rs100 per bag of 100 kg, while maize rose by Rs75 followed by reports of slow arrivals from upcountry markets.

The major oilseeds, cottonseed were quoted higher by Rs25 per maund, while rape seed and castor seed, were held unchanged at the last levels.

Til on the other hand came in for active support from the leading exporters and was quoted higher by Rs200 per muand amid active trading.

Oilcakes ruled unchanged for both cottonseed and rap seed amid slow demand from the extraction plants.—M. A