A fresh price flare-up on the rice sector featured the last week’s trading on the Karachi wholesale commodity markets where other essential items also rose in sympathy.
Other essential items, notably some type of pulses and wheat, followed them despite reports of comfortable position but brokers said it was an increase in sympathy with rice sector.
Dealers said bulk of last year’s record rice crop, notably IRRI varieties has already been physically shipped to various export outlets, notably to Iran, Gulf and some African destinations causing local shortage and the consequent increase in prices.
The notable feature was, fine types of basmati including sela and kernel, which have been almost dormant for the last couple of weeks, while IRRI varieties were in demand, also burst into activity as foreign buyers opted for them.
An idea of price flare-up among them may be had from the fact that the kernel type was quoted higher by Rs200 per bag and Sela type followed, reflecting strong foreign demand, they said.
The general consumers complain that a judicious balance was not maintained between the export and local demand as there was no check on the export allocation.
And as a result, consumers have to pay more as prices of all type of rice have touched the all-time high levels under the fine ones, which were victim of the slack foreign demand for the last couple of years, they said.
According to official figure a bumper crop of about 5.5m tones was harvested last season, the second in a row and the current crop sowing of which is well in progress is expected to be another record crop owing to easy availability of irrigation water. Market sources said prices are expected to ease from the current peak level after the arrival of new crop in the middle of September or late August.
Wheat followed them on reports of sale of half a million tones of the commodity to India from the new bumper crop in addition to the previous crop already in the process of shipments to various countries.
The market advance was led by the rice sector under the lead of fine varieties, notably sela and kernel, which rose by Rs200 per bag of 100 kg owing to pressure on the stocks of IRRI types.
IRRI-6 and IRRI-9 were quoted higher by Rs10 to 150, while IRII broken and basmati broken rose by Rs20 to Rs100.
Pulses followed them under the lead of peas and gram dal, which posted gains ranging from Rs25 to Rs100, while urad came in for stray selling by a leading importer and fell by Rs.25.00.Peas,moong and masoor followed them ,rising by Rs25.00 to Rs150. Wheat reacted favourably to reports that half a million tones from the production surplus will be exported to India. Millers and exporters hastened to build up long positions at the current levels fearing further increase in prices. Prices were quoted higher by Rs20 to Rs30.
The commodity is already being physically shipped to a number of countries from the previous crop by private sector, which is keeping prices higher despite a bumper crop.
Cereals on the other hand showed divergent trend amid alternate bouts of buying and selling. While barley and bajra fell by Rs25 to Rs30 per bag, maize came in for active support from the processors and was quoted higher by Rs25 to Rs50. Slow arrivals from the upcountry markets was another aiding factor.
Among major industrial raw materials, guar seed was quoted higher by Rs50 per bag of 100 kg owing to a short crop and strong demand from the local mills.
There was again a relative quiet on the oilseed sector where prices of major seeds including cottonseed, til and castorseed were quoted unchanged amid slow trading.
But rapeseed came in for active mills support followed by reports of a short crop and were quoted higher by Rs30 to Rs50 per 40 kg.
Oilcakes were quoted unchanged for rapeseed cakes, while cottonseed cakes suffered fresh fall ranging from Rs10 to Rs30 on selling triggered by fresh arrivals from Sindh markets and weak future market.
A fresh price flare-up on the rice sector featured the last week’s trading on the Karachi wholesale commodity markets where other essential items also rose in sympathy.
