PRICES of most of the essential items, last week increased on the Karachi wholesale commodity markets because of the pressure on ready supplies and an increase in retailer’s demand. There was a relative quiet on the export front ahead of the June 6, Budget, as importers kept to the sidelines instead of selling in haste.
However, the pre-budget uncertainty about the taxation and duties measures curtailed the daily offtake by commercial houses, although retailers remained active buyers.
Arrivals from the upcountry markets, notably from Sindh, were on the lower weekly average which flared the prices up on essential counters, brokers said.
Owing to the Wednesday’s strike, the murder of an MMA leader, and the violence after the attack on a mosque disrupted arrivals from the Interior which pushed the prices up on some counters, they said.
Increases, however, were orderly as there was no panic buying from any wholesaler or retailer as none covered their positions, market sources said.
They said that the prices were expected to come down to their original level once the arrivals from upcountry markets were normalized. There were no pre-budget hoardings by leading commercial houses.
Meanwhile, reports originating from the Rice Export Corporation indicate that the private-sector exporters, during the current season, had made a record $726 million worth of physical shipments of the commodity, much before the arrival of the new crop.
The massive forex reserves reflected the exporters’ success in achieving a major breakthrough in world markets by manoeuvring out some competitors from the Gulf and the European markets, analysts said.
They said that an identical breakthrough was also needed in the fine varieties of rice, including kernal and sela types which are sold higher than the IRRI varieties.
The RECP high-ups had decided to celebrate the event before making the debut on export front and had chalked out an elaborate programme to be chaired by the commerce minister, market sources said.
Although, some essential items showed modest increase under the lead of wheat which rose by Rs20, due to a slowdown in arrivals from the upcountry on account of law and order situation and strike.
Other essential items, including sugar and rice, were traded at the last level despite reports of pressure on ready supplies because of the holding back of stocks by the commercial houses.
Even reports of record rice export during the last season and celebration of the achievement by the RECP, kept the prices stable around previous levels.
According to market sources the unsold stock of the previous crop had been exhausted.
They said that no rice loader called to load the commodity this week as was witnessed in the previous weeks when some met the deadlines by loading a consignment of 20,000 tons.
Pluses also showed dull trading as importers keenly awaited the budget and subsequent measures or exemptions in taxes and imports.
It was interesting that the price of gram whole and gram dal remained stable at previous levels despite reports of sale of 25,000 tons of the commodity to India. Pakistan had just harvested a bumper crop of a million tons.
Among the cereals, both maize and barley showed fresh rise amid reports of slow arrivals and strong local demand. Both rose by Rs25 each but on the other hand bajra suffered a fall of Rs75 per maund on selling prompted by the reports of steady arrivals. Prices hovering around Rs2,000 per bag were still on the higher side, brokers said.
Major industrial raw materials did not show much change and remained pegged at previous levels where stray business was reported. Guar and some other types remained unchanged.
Oilseed sector showed mixed trend while cottonseed was traded at previous level. Rapeseed came in for active selling followed by the reports of steady new crop arrivals from Sindh. Prices of all varieties were marked down by Rs15 to 65 per 40kg.
Oilcakes also showed weak trend owing to pressure on oil and seeds and suffered fall ranging from Rs5 to 8, respectively for both cottonseed and rapeseed cakes on active selling.—M.A.
PRICES of most of the essential items, last week increased on the Karachi wholesale commodity markets because of the pressure on ready supplies and an increase in retailer’s demand. There was a relative quiet on the export front ahead of the June 6, Budget, as importers kept to the sidelines instead of selling in haste.
