PRICES of some essential commodities on the Karachi wholesale markets further increased under the lead of all varieties of IRRI and basmati as reports of short supply continued to inspire consumer demand.

Higher export demand and holding back of stocks by some commercial houses is believed to be the main reason behind the unprecedented increase in rice prices. The largest single week price flare-up was reported in IRRI-9, which spurted by Rs500 per bag followed by basmati varieties which were also quoted higher by the same amount.

Physical activity, however, was on the lower side of the weekly average as buyers were not inclined to make bigger commitments hoping fall in prices in the coming weeks.

Wheat prices should have declined from the current higher levels as new crop arrivals are steady on the local markets together with release of imported stuff to flour mills, but instead they maintained their drive upward.

Market sources said reports of damage to standing crop by early week rain in the major wheat growing areas, was the chief factor behind the renewed price flare-up.

The wheat crop is currently under harvest and is expected to be on the local market by next couple of weeks, which, in turn, may cause price decline, they added.

Unlike previous weeks, prices of some type of pulses did rise but modestly partly owing to an improvement in the ready position and partly to the absence of buyers at the higher rates, dealers said.

But the current price flare-up could not be contained in the rice sector as exporters remained active buyers from the ready section to meet their physical shipment demands to various countries.

Dealers said there was a pressure on ready supplies as bulk of the commodity had already been shipped to various countries under forward deals made late last year

Barring basmati, which was quoted modestly higher, other fine types including sela and kernel, remained unchanged followed by reports of a considerable decline in local demand at higher levels, they said. Sowing of rice crop is expected to resume by next week, and until the new crop arrives its prices may remain on the higher side, brokers said.

Apart from rice varieties, gram whole and gram dal rose sharply higher by Rs50 to Rs400 per bag on reports of a short crop and hoarding of stocks by leading traders.

Basmati (new crop) was, however, an exception which was quoted lower by Rs200 per bag on selling prompted by steady arrivals from upcountry markets.

Broken types of IRRI and basmati followed the price pattern. While broken IRRI was quoted higher by Rs25 to Rs100, broken basmati was quoted higher by Rs300.

Masoor whole and dal and urad, on the other hand, came in for active selling at higher levels and were quoted lower by Rs100 to Rs200 per bag of 100 kg.

Wheat prices also rose despite reports of steady arrivals of new crop and went up by Rs15 to Rs60 on reports of damage to standing crop after the recent rain.

On the cereal sector, bajra rose by Rs50 to Rs75 per bag, while barley was quoted higher by Rs50, jowar and maize were traded at previous levels amid light trading.

Oilseed sector showed a little change as supply position remained fairly comfortable. Til was an exception, which fell by another Rs100 on selling by some exporters after the decline in world markets.

Other major seeds including rapeseed, castorseed were traded at previous levels, barring cottonseed, which fell by Rs50.

Cotton also came in for active selling at the weekend session and was marked down by Rs25 amid active trading.

Oilcakes maintained firm trend on active demand and were quoted higher by Rs20 to Rs25 per 40 kg for both the rapeseed and cottonseed cakes respectively.—M.A.