AN unprecedented price flare-up on the rice counter highlighted last week’s trading on the Karachi wholesale markets as pressure on local supplies triggered panic buying by general consumers.
All varieties of rice, including IRRI, basmati, sela and kernel types, soared to all-time high levels so far and dealers said the commodity was not freely available partly because of hoarding and partly to massive exports.
The largest rise of Rs1,000 per bag was recorded in sela basmati followed by Rs400 and Rs600 per bag in basmati and kernel variety respectively. Dealers said there were no indications of fall in prices until new crop arrived in late August or early September.
The market sources said ban on export of wheat and gram did not ease the price situation but hoped it would play a role in arresting price spiral in the coming weeks.
Another price flare-up was witnessed on the wholesale commodity markets for the second week in a row as speculative buying remained at peak level amid reports of pressure on ready supplies.
Rice and pulses’ sectors again led to market advance on essentials’ counters followed by reports of slow arrivals from upcountry markets and holding back of stocks by some of the importers of pulses.
The market sources said the three-day strike threat by city transporters, which was deferred later, also worked against the underlying sentiment but there was panic buying amid fears of law and order situation during the proposed strike.
They said physical shipments of rice appear to be one of the bullish factors behind the sustained price flare-up and supplies were far below local demand, bullish trend continued for the second week.
The sources did not expect any easing of prices. Hoarders and exporters are not inclined to release any part of their holdings in the open market to push prices lower from the record higher levels.
The new crop of rice is still month away as sowing is well in progress in major growing areas, prices are expected to rise further to set new all-time high records both for IRRI and fine varieties, they added.
Wheat followed it for the second consecutive week amid reports of physical shipments of the commodity to various countries. Private sector exporters are inclined to use the entire export quota of 1.3m tones of wheat without ensuring a pressure on the local prices expected to be caused by short supply.
Pluses also maintained their upward drive, although mid-week arrivals from upcountry markets contained speculative price flare-up and some of the types were quoted lower on selling.
There was, however, a relative quiet on the industrial raw material sector owing partly to normal supplies and partly to a considerable decline in demand of local processors.
Some varieties of pulses also showed fresh increase under the lead of masoor and masoor dal, which rose by Rs100 to Rs150 per bag but local moong variety fell by Rs150, with all other remaining pegged at previous levels.
Cereals also showed sympathetic increase under the lead of maize, jowar and bajra, which posted gains ranging from Rs25 to Rs125 per bag but barley, on the other hand, was held firmly at the last levels despite steady demand from the processors.
Oilseed sector again remained dormant as supplies matched local demand of crushers. Arrivals from upcountry markets were also said to be fairly active.
Major seeds, including cottonseed, rapeseed barring Mirpurkhas type, which was quoted higher by Rs10, castorseed, were traded around the previous levels. Til was an exception, which rose by Rs50 per 40 kg followed by active demand from foreign buyers and partly to slow arrivals from Sindh markets.
Oilcakes showed divergent trend amid slow trading. While rapeseed cakes were quoted unchanged, where as cottonseed cakes were marked down by Rs20 to Rs50 per bag.—M.A.
AN unprecedented price flare-up on the rice counter highlighted last week’s trading on the Karachi wholesale markets as pressure on local supplies triggered panic buying by general consumers.
