Prices of some of the essentials fell from the recent higher levels on the Karachi wholesale markets last week partly on selling by the leading commercial houses owing to upcoming Eid holidays and partly to falling demand from the general consumers.

Market sources said arrivals from the upcountry markets remained slow as leading cargo haulers were engaged in transporting sacrificial animals at the much higher rates rather than opting for general cargo.

Market sources also attributed the decline in prices of essentials including wheat and rice to the city violence and interruption in physical activity owing to shutdowns earlier in the week.

Both wheat and rice types suffered major falls ranging from Rs300 to Rs700 per 100-kg bag in the absence of local buyers and interruption on the export front, they added.

The market’s salient feature was a sharp fall of Rs300 per 100-kg wheat bag for the first time after increase in its official support prices to Rs925 per 40 kg was widely welcomed by the general consumers, traders said.

But wheat flour did not show any sympathetic decline and continued to sell at higher rates at Rs30-Rs38 per kg from area to area, they said.

Traders said rice prices should have risen followed by reports of dispute between the growers and the millers on prices and closure of some of the rice mills in the interior of Sindh.

The growers have requesting the government to direct the Pakistan Storage and Supplies Corporation (Passco) to begin procurement operations to support them as they are not being offered reasonable prices, they said.

They said the steep decline in rice prices on panic-selling by the local stockists despite hectic exports suggested a larger crop this year.

But some others said active support being extended by the Gulf states as compared to India should have kept prices on the higher side but local selling in the backdrop of another bumper crop well over 6.5m tons continued to inspire speculative selling.

According to market sources Saudi Arabia alone indicated to buy a 1m tons of fine basmati from Pakistan during the current season in addition to Irri types.

The commodity market was led by the rice sector which showed all-round decline under the lead of Kernal type, which was quoted lower by Rs500 per 100-kg bag on reports of steady new crop arrivals.

Irri-6, Irri broken, broken basmati fell by Rs200 to Rs700 amid active selling by the local stockists amid reports of falling demand both from the domestic consumers and private sector exporters.

Pulses on the other hand came in for modest pre-eid holiday trading.

Masoor price rose by Rs200 and gram dal by Rs100 per 50-kg bag due to higher usage in Eid-related dishes.

Other pulses were held unchanged.

Sugar also showed a modest gain of Rs50 per 40 kg and so did gur and desi sugar and rose by Rs100 per 100-kg bag amid late week buying.

Cereal sector remained dormant in the absence of sufficient demand and maize, jowar bajra were traded at the last levels, while barley and gurseeds rose by Rs50 to Rs100 per 100-kg bag.

Oilseed sector on the other hand showed quietly easy trend followed by steady selling and fell under the lead of cotton, which was marked down by Rs50 per maund.

But on the other hand, til came in for active support by the exporters and rose sharply higher by Rs300 to 600 per maund, while castorseeds were held unchanged.

Oilcakes ruled unchanged for rapeseed cakes, while cottonseed cakes were marked down by Rs30 to Rs40 per 50-kg on selling prompted by larger new crop arrivals.—M.A