April 3, 2006	Monday	Rabi-ul-Awwal 4, 1427

THE prices of essential commodities on the Karachi wholesale markets generally increased last week as the demand outweighed the ready supplies on reports of slow arrivals from the stockists and importers.

Pulses, notably the imported varieties showed a sharp increase as a pressure continued to mount on the supplies, particularly on masoor and moong which witnessed a price flare-up. Moong was outstanding among them and soared by Rs375 per bag hitting a new all-time high so far, while others followed in its footstep.

Prices of some had already struck the all-time high levels and as the word passes on these will stay around at the same peaks due to local conditions - sans an increase in the supplies, said a broker.

Dealers attributed the price flare-up partly to reports of holding back of stocks by some leading stockists and to the fall in imports owing to higher international prices.

Pulses from Iran and India were imported at much lower rates as compared to other countries but now both have raised their import tariff too, thus adding to the local hike, they added.

But some others said that the flare-up was the fallout of sugar market where prices were again quoted higher. This was due to the reluctance of the stockists as the mills and importers who were supplying the commodity to them were not ready to budge an inch from their inflated levels, some others said.

Wheat and some types of rice also showed modest increases despite the fact that the ready position of both was fairly comfortable owing to larger previous stocks and a record rice crop, they added.

Meanwhile, the harvesting of new wheat crop has already resumed in major crop areas and a modest quantity of the new crop has begun arriving at local markets while the dealers hope a decline in the prices in the coming weeks.

However, official wheat procurement operations were still to resume on a bigger scale. Some commercial traders were said to be in the market busy buying the commodity direct from the growers below the officially fixed prices.

Sugar prices were expected to ease from the current heights during the next couple of weeks as the recently bought orders of 50,000 tons were likely to arrive by then.

In physical trading, bulk of the activity remained confined to the pulses sector where some wholesalers and retailers indulged in panic-buying on the reports of short supply.

Prices of all varieties demonstrated increase ranging from Rs100 to 200 per bag, the largest rise of Rs625 and 800 per bag being in Moong and urad imported types followed by masoor dal, off Rs200 per bag.

Apart from the slow arrivals, both from the upcountry market and importers, the holding back of stocks by some leading commercial houses was said to be the chief factor behind the rates rise, dealers said.

They said that the pulses were following the sugar market where prices could not be chained despite higher imports and the release of stocks by the Trading Corporation of Pakistan.

Wheat followed them despite the reports of new crop arrivals from the lower Sindh markets. This was followed by kernal type of basmati which rose by Rs15 and 300 per bag, respectively.

An increase in the fine type of basmati reflected smooth sailing on export the front at competitive prices. IRRI-6 also rose by Rs25, while others were held unchanged.

Among the cereals, the new crop of barley came on the trading board and was quoted sharply lower per bag as compared to the old crop which was trading at the higher level of Rs1,300. The decline reflected higher new crop.

Maize, bajra and jowar on the other hand maintained their previous level as supplies matched the local demand owing to steady arrivals from the upcountry markets.

Guarseed on the other hand did not show any softening in the prices and rose by Rs50 despite a considerable decline in the demand because of higher prices. Processors made selective buying.

Major oilseeds, notably castorseed and til were marked up on the revival of foreign demand rising by Rs25 and 75 respectively, while cottonseed were quoted unchanged.

Oilcakes ruled easy in sympathy as both cottonseed and rapeseed cakes were quoted lower by Rs5 each, amid the falling mill demand.—M.A.