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Today's Paper | December 12, 2024

Published 31 Mar, 2008 12:00am

Price of sugar rises, rice declines

TRADING on the Karachi wholesale commodity markets during the previous week resumed on a higher note but mid-week steady arrivals of some of the essential items triggered a good bit of selling and pushed the prices modestly lower. The notable feature of the week was an all-time rise in prices of til, which was one of the major export items having firm foreign market outlets. But weekend selling at inflated levels pushed its price down from the peak levels.

During the week it was quoted as high as Rs6,000 per 40 kg, the total cumulative increase being Rs2,500 during the last about two months. However, it finished around Rs5,500 per 40kg on weekend selling triggered by reports of steady arrivals from Sindh markets, dealers said.

The price flare-up is attributed partly to a short crop and partly to strong world demand, private sector exporters said.

Equally important was the price decline in some varieties of rice, which had attained peak levels owing to higher exports. Brokers expect further fall in prices as some local stock holders were selling their stock at the current levels amid fears of fresh fall in prices.

Unlike previous week, when the activity fell to low ebb on most of the essential counters, both commercial traders and brokers were back on the market but played on both sides of the fence, dealers said.

Some of them rolled positions from essential counters to others as supply position improved, mainly of wheat which came in for renewed selling and steadily maintained its downward drift, they said. Apart from a sizable import of wheat, harvesting of the crop in the wheat belt and steady arrivals form the interior triggered a good selling from the local stock holders easing its prices, they added. However, as expected, decline in wheat prices over the week did not have any sympathetic impact on other essential counters, which either stayed unchanged or showed rising trend.

Although official procurement of the commodity in some areas has resumed at Rs510 per 40kg, brokerage houses and commercial dealers are said to be offering a rate of Rs600.

Reports say some of the growers are selling their produce at higher rates to private traders, which market sources said, could lead to another crisis on the wheat front.

The market advance was led by sugar sector following reports that arrivals from mills had shown a substantial fall. It was also owing to reports that Indian sugar was being sold on the market in an effort to keep prices higher.

Prices of white sugar were quoted higher by Rs50 to Rs220 per bag of 100 kg and so did gur and desi sugar, which also rose in sympathy.

Pluses, on the other hand, showed mixed trend. While gram whole and dal rose by Rs125 to Rs150 per 100 kg, masoor whole and beetle suffered fresh fall ranging from Rs50 to Rs125, while other varieties were held unchanged at previous levels.

After initial fall owing to selling by local stockists, new crop of wheat was quoted higher by Rs20 followed by reports that the private sector buyers were purchasing it at around Rs600 per 40 kg as against official rate of Rs510.

Rice sector showed mixed trend and while fine varieties including sela and kernel types were held unchanged, IRRI-6 and broken declined modestly on selling by local dealers.

Cereals also showed divergent trend amid alternate bouts of buying and selling, leading loser among them being jowar, off by Rs100 to Rs150 per bag of 100 kg. Maize and bajra were firmly held unchanged at previous levels.

On the oilseed counter, prices of rapeseed were quoted further lower by Rs125 to Rs150 per 40kg on selling triggered by reports of higher new crop arrivals from Sindh markets, cottonseed rose by Rs35.

Oilcakes showed gains of Rs10 to Rs20 for cottonseed cakes, while rapeseed cakes fell by Rs25 to Rs30 in sympathy with fall in rapeseeds.—M.A.

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