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| June 11, 2007 | Monday | Jamadi-ul-Awwal 25, 1428 |
High prices of rice impact exports
AFTER an initial lull, Karachi wholesale markets last week burst into activity followed by rumours of tax relief on some essential counters to bring prices down from the current peak levels.
Much of the activity remained confined to essential and industrial sectors amid widespread price changes as commercial houses and importers adjusted their positions before the announcement of fiscal measures and tax relief in the budget.
Unlike previous pre-budget sessions, the early relative lull and the absence of leading brokers from the market reflected that no one was inclined to sell or buy any of the essential items anticipating major changes in future price outlook as a result of some consumer-friendly incentives, brokers said.
Some of the leading importers, notably of pulses, were a bit worried as any change in import trade could adversely affect their recently imported stock, they said.
An idea of relative calm on counters of some of the essentials items may well be have from the fact that their prices did not post even fractional changes despite their arrival from upcountry market were on the lower side of the weekly average, they added.
“Leading brokers and agents in the upcountry trading centres also slowed down arrivals and held on to their unsold stocks awaiting fiscal measures in the budget and their impact on local prices, “ some others said.
Activity on the export front also slowed down, notably on the rice counter in the absence of private sector exporters owing to higher prices being demanded by stockholders.
A rice loader was earlier on the port loading a consignment of 19,000 tons which departed by weekend. No other rice loader was due this week.
Wheat prices did not show much change during the post-ban trading sessions and stayed at the previous levels despite reports of steady covering purchases by flour mills.
On the sugar front, prices remained stable followed by reports of steady arrivals from sugar mills and regulated supplies by the Trading Corporation through utility stores.
Among other essentials and export related items, rice prices showed divergent trend. While basmati varieties, notably kernel type rose by Rs400 followed by basmati and broken varieties, which were quoted higher by Rs200 per bag.
But on the other hand sela basmati and IRRI broken suffered fall ranging from Rs30 to Rs35, the largest Rs200 per bag being in sela type. Fall in export demand was said to be the chief factor behind the selling by the brokers.
Pulses sector also showed mixed trend. While gram prices were quoted higher by Rs25 to Rs50, moong suffered a fall of the same amount, with other varieties remaining pegged at the previous levels. Guarseed rose by Rs25 per bag.
Sugar prices on the other hand remained under pressure and were marked down between Rs75 and Rs100 per bag.
Among cereals, bajra was quoted higher by Rs50 to Rs100 per bag of 100 kg, while jowar and maize suffered fall to the extent of Rs15 and Rs150 per bag. Sharp decline in maize was attributed to steady arrivals of new crop.
Among major seeds, rapeseed came in for strong mill buying and were quoted higher by Rs15 to Rs40 per 40 kg bag, but other seeds, including cottonseed, til and castorseed were traded at previous levels.
Oilcakes rose by Rs20 to Rs22 for rapeseed cakes in sympathy with rise in rapeseed prices, cottonseed cakes on the other hand fell by Rs20 on selling by ginners.—M.A.
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