March 12, 2007	Monday	Safar 22, 1428

SHARP decline in price of pulses highlighted trading on the Karachi wholesale markets last week where leading importers indulged in panic selling followed by reports of larger imports and fears of price crash.

All varieties, both imported and local, fell across the board major losers among them being moong, gram whole and gram dal, which were quoted lower by Rs375 to 400 per bag of 100kg, dealers said.

Trading activity, therefore, remained confined to the essentials’ counters but unlike the previous weeks price changes were orderly and instances of steep fall were there but increases were not many.

There was a relative quiet on the ready counters as general consumer awaited the impact of officially subsidised items on the wholesale sector. Ready offtake was, therefore, light.

The government early last week had announced that some of the essential items, including flour, rice, sugar and ghee would be available at subsidised rates on some of the officially appointed selling outlets.

Market sources expect some price adjustment on the essentials’ counters in the coming weeks as a good part of the consumer demand is expected to be shifted to official subsidised selling outlets.

But some others said procurement problems at the official outlets amid long queues may discourage some of the general consumers who may again opted for local wholesale markets.

However, one thing appears certain a section of consumers still prefer to buy at lower rates from the officially-appointed sellers despite some problems on the spot, they added.

Much of the activity, however, remained confined to the pulses sector where prices rose and fell amid conflicting reports about release of fresh stocks by the importers.

Export sector, on the other hand remained dormant private sector exporters remained conspicuous by their absence owing partly to higher asking prices and reported pressure on future supplies.

However, rice loaders remained in the port loading the commodity against the forward deals signed earlier in January with some of the foreign importers, notably from the Gulf and Iran.

Some of the industrial raw materials also showed some softening partly because of fall in demand and partly to steady arrivals from the upcountry trading centres.

Apart from major losers, notably gram whole, masoor and urad followed them, falling by Rs100 to 250 per bag, beetle and peas followed them to the lower side.

Among other essentials, wheat suffered a fresh fractional decline of Rs5 to Rs15, while price of sugar varied from region to region barring on official outlets.

Unlike the previous sustained run-up, rice sector came in for modest selling at higher levels followed by reports of steady arrivals from upcountry markets, notably from sindh.

All varieties, including IRRI-9, and basmati, were quoted lower by Rs45 to Rs250 per bag as exporters remained conspicuous by their absence. IRRI-6 was an exception, up by Rs10 to Rs15.

Major industrial raw materials also showed modest decline partly on selling and partly to slack local demand and fell by Rs25 per for Guar seeds and others.

Cereals on the other hand showed divergent trend. while maize and jowar rose by Rs5 to Rs25 per bag of 100 kg, bajra fell by Rs30 to Rs100.

Oilseed sector passed through a dull trading week as prices of major seeds, including, cottonseed, rapeseed, castor seed, and til were firmly held at the previous levels amid falling ready demand.

Oilcakes ruled unchanged from rapeseed cakes, while cottonseed cakes rose by Rs30 per 50 kg on fresh buying made by the extraction plants.—M.A.