PRICES of most of the essential items on wholesale commodity markets, during the preceding week, did not show much change which generally remained stable around previous levels amid light trading.

Dealers attributed the relative lull, partly to steady arrivals from the upcountry trading centres and to the falling demand from retailers and general consumers. There were no reports of hoarding by commercial and brokerage houses but few conflicting reports from officials and crushers over higher prices of white sugar kept making rounds, they said.

The question which was being debated was: Why the larger imports failed in pulling the prices down to a level competitive for a general consumer? There was an official reference to the intentions of crushers for holding back the stocks to continue with the prevalent price tag, some brokers said. Yet, the prices stayed around previous levels as mill owners exercised the right to sell the commodity at higher rates after purchasing cane at twice the official rates, they said.

However, it was clear from the rigid positions taken by both that the consumer may not get an immediate relief but would have to wait for the new crop, late this year, they added.

An interesting feature was the stability of gram dal prices despite new crop exports to India and other countries.

Meanwhile, brokers and commercial houses were watching the supply line in the backdrop of the government move to allow duty free import of vegetables and cattle from Afghanistan and India. Dealers were waiting to note the fallout of these imports on those essential items which were being traded on the wholesale basis.

Export of rice and some other commodities was maintained on the higher side without any price increase, notably the rice.

Some essential items came in for active selling after mid-week, while others attracted fresh support and ended higher followed by the reports of tight ready position.

The notable feature of trading was the regression of sugar prices from their six weeks’ high echelons. This was attributed to the Prime Minister’s warning to mill owners to release the stocks in the open market because despite imports the prices were unchanged.

White sugar suffered fall ranging from Rs10 to 80 as some mills sold in panic, while gur was traded higher by Rs50 to 100 with desi sugar remaining pegged to previous points.

Wheat, on the other hand, did not follow the lead despite steady new crop arrivals from Sindh on private accounts. Price rose by Rs20 per bag followed by reports that the speculative forces had entered the market and were building long positions, above the support price.

Pulses showed mixed trend. Urad imported type rose by Rs200 per bag, masoor dal from India was down by Rs100 which was much cheaper than the Iranian or the Australian stuff.

Other items were traded around previous levels under the lead of rice as supplies matched the local demand. Export of rice was again higher as a rice loader remained in the port loading the commodity throughout last week. On an average about 4,000 tons were loaded daily.

Among major industrial raw materials, guar was on the higher side as compared to export parity level and suffered a fall of Rs25 to 75 on selling prompted by recent rains and reports of sowing of the new crop well in time.

Cereals too, faced short supply owing to a considerable fall in the arrivals. Maize and bajra rose by Rs15 to 25, major rise of Rs125 being in Bajra. Maize was held unchanged and so was the barley.

Oilseed sector showed mixed trend. While prices of rapeseed fell by Rs10 to 20 on selling triggered by steady new crop arrivals, cottonseed, castorseed and til were held unchanged.

Oilcakes on the other hand rose by Rs5 to 11 in sympathy with firm oil markets.—M.A.