THE recent price flare-up on the Karachi wholesale commodity markets was well sustained for the eighth consecutive week last week as demand far outhweighted the supplies.

Rice sector again led the list of major gainers where prices rose in unison amid reports of shortage of ready stocks, IRRI types being the top gainers whose prices spurted by Rs500 per bag of 100 kg.

Prices of most of the essential items soared to their fresh higher levels under the lead of rice and some type of pulses despite reports of steady arrivals from upcountry trading centres and release of sufficient stocks by importers.

“The wholesale commodity markets are in the tight grip of speculative forces which are regulating supplies to trading outlets to keep prices on the higher side”,said a leading dealer.

He said most of the essential items appear to be a victim of sympathetic increase despite the fact that their ready position is fairly comfortable.

“The unprecedented rise in prices of rice varieties is understandable as bulk of the record crop has already found its outlet in the exports channel”, another dealer said adding ‘’it appears difficult at this stage to bring prices down to a manageable rates or pre-flare-up levels”.

Consumers may have to wait for the arrival of new crop sometime in late September and that too if the crop is good and may touch the previous season’s level of 5.50 million tons.

Prices of IRRI and fine varieties including broken one were quoted as high as Rs200 to Rs400 per bag of 100 kg, but at the consumers’ end they were more expensive, market sources said.

However, the prices of wheat remained stable around the previous levels owing to steady arrival of imported stuff and its prompt release to relevant quarters, they added.

A half million tons of the commodity is being imported, bulk of which has already arrived to stabiles prices around Rs15 or Rs16 per kg.

Harvesting of the crop in the entire wheat belt is in progress and its arrival is due in the local market in a bigger way during the next couple of weeks.

However, growers are reluctant to accept the official procurement price at Rs510 per 40 kg as it is being sold on the open market well over Rs600.

The interesting feature of the week’s trading was that cereal sector also showed a sympathetic increase despite the fact their arrivals from the upcountry markets were normal.

Rice sector led the market advance where prices of fine types basmati rose by Rs75 to Rs300 under the lead of kernel type, which rose sharply on reports of fresh export orders and pressure on local supplies. Sela type was, however, held unchanged.

But the largest rise was recorded in IRRI-6 and IRRI-9 and its broken type, which were quoted higher by Rs400 to Rs500 per bag. Broken basmati also quoted higher by Rs400 in sympathy.

They were followed by pulses sector where prices of gram whole, gram dal were quoted higher by Rs200 to Rs250. While masoor whole and dal came in for active selling at the higher levels and were marked down by Rs300 to Rs600 per bag.

Guarseeds also came in for active mill buying on reports of higher export and were quoted higher by Rs50 to Rs175 per bag of 100 kg. Among other essentials, sugar came in for fresh selling on reports of a record crop of well over four million tons. Gur and desi sugar also fell from the previous levels.

The current price flare-up also spilledover hereto inactive cereal sector as prices of maize jowar and bajra posted from Rs50 to Rs100 amid active trading followed by reports of slow arrivals from ucountry markets.

Oilseed sector also showed bullish trend as prices of rapeseed were quoted higher by Rs200 to Rs300 higher despite arrival of new crop.Cottonseed was also quoted higher.

While castorseed was traded at previous level for want of an appreciable export demand, til scored highest even weekly gain of Rs1,300 to Rs1,500 per 40 kg owing to a short crop and higher export demand.

Oilcakes also showed firm trend as prices of both rapeseed and cottonseed cakes were quoted higher by Rs35 to Rs45 in sympathy with sharp rise in oilseeds.—M.A.