July 31, 2006	Monday	Rajab 4, 1427

A SHARP increase in the prices of IRRI varieties featured last week’s trading on the Karachi wholesale markets where other essential items also rose in sympathy with the raise and due to short supplies.

Floor brokers said that owing to higher exports of the commodity during the current year, there was a pressure on ready supplies as arrivals from the upcountry markets were virtually dried up.

There were reports that the export figures of rice, both fine and IRRI types, crossed the one-billion-dollar mark for the first time during the year and also for the first time in the country’s history.

As new crop from the Sindh rice belt was still two months away, brokers feared further increase in the prices in coming weeks as stocks held by local commercial and brokerage houses were not sufficient to meet the rising local demand.

But on the other hand prices of fine types, both sela and kernel were firmly held around previous levels despite higher exports to Gulf and some European countries, they added.

Reports reaching here from the rice belt indicated that despite interruption in the supply of irrigation water here and there during the season, there still was a modest improvement in it as compared to the previous season.

According to crop survey conducted by leading exporters, the crop was normal and could touch the size of the previous year. World prices were still ruling high and exporters intended to improve upon the last year’s export value.

Owing to mid-week increase in rice prices, some other essential items also showed sympathetic rise under the lead of some types of pulses, notably gram whole and gram dal.

But brokers said that the arrival of a big consignment of 40,000 tons of yellow peas over the week could ease the prices of gram and others once it found the way into local selling outlets.

But on the other hand trading activity on other counters was relatively slow followed by the reports of steady arrivals from the upcountry markets and a considerable decline in the ready demand.

Active trading was witnessed after mid-week as pent demand came in a big way on essential counters and lifted sharply up, the prices of most of them under the lead of pulses.

Gram, gram dal, masoor and masoor dal were quoted higher by Rs25 to 100 per bag. However, larger gains were checked as supply position improved at the fag-end of the week as some importers released more stocks. Urad was an exception which suffered a decline of Rs125 on the selling by a leading importer.

Rice sector followed them on reports of short supply and holding back of stocks by some leading stockists. Prices of IRRI-9, IRRI-6, and sela basmati were quoted higher by Rs20 to 100, the largest rise of Rs150 being in sela basmati.

Other varieties, including kernel basmati were held unchanged, while IRRI broken came in for stray selling followed by reports of export demand and fell by Rs10.

Among other essentials, wheat showed a fresh but modest rise of Rs15, while sugar prices remained highly erratic despite reports that duty free import of the commodity will continue.

A modest decline of Rs15 to 25 in was witnessed in maize on reports of selling caused by steady arrivals of new crop, while barley rose by Rs5 with bajra remaining unchanged from the previous levels.

Guarseeds on the industrial sector eased from the recent highs followed by reports of good new crop owing to recent rain in the growing areas, while others were held unchanged.

Barring an increase of Rs50 in rapeseed, oilseed sector did not show much change as prices of all major seeds, including cottonseed, castorseed and til were held unchanged for the want of ready and export demand.

Oilcakes posted a modest rise of Rs10 for cottonseed cakes but rapeseed cakes were again traded at previous levels amid slow ready offtake.—M.A.