PRICES of some essential items on the Karachi wholesale commodity markets, during the post-budget trading week, witnessed fresh increase instead of showing any decline, as subsidies failed to check fresh flare-up, floor brokers said.
Some others said subsidies could push prices lower to some extent in due course of time, but not to the extent it could provide substantial relief to general consumers.
Pent up demand did not figure prominently on any of the essential counters as consumers awaited the impact of official steps to push price down. Instead prices went up higher, they said.
Floor brokers said arrivals from upcountry markets were on the lower side of the weekly average. This was because stock was held on with a view to avert possible fall in prices of any of the commodity owing to impact of budget concessions on essential items, they added.
As ready supply position was tight, and some of the wholesalers were short of stocks to meet the daily demand of retailers, they opted for post-budget buying at higher rates.
Market sources said subsidies were expected to influence the current higher prices on the lower side in due course, but their immediate impact on the lower side was negligible.
As a result, wheat, sugar and some type s of pulses were traded further higher as leading stock holders were not inclined to loosen their grip on the prevailing prices.
Some IRRI types were, however, an exception which came in for modest selling partly owing to drop in demand from the private sector exporters and partly because of reports of fresh arrivals from Sindh markets.
However, new crop, notably from Sindh rice belt, is three to four months away and during this period prices could rise further depending on the revival of exporters’ demand.
But some dealers said most of the unsold stocks of the current crop have been exhausted as was reflected by highest price flare-up on this counter, reflecting pressure on local supplies.
Major industrial raw materials, including oilseeds, lacked normal trading interest followed by reports of steady arrivals from upcountry markets and falling demand from processors as most of them had covered their positions early in the season at lower rates, they added.
The market advance was led by some varieties of pulses, especially moong, beetle, and peas, which were quoted higher by Rs30 to Rs200 per bag, the largest being in peas and beetle types. Others were traded at previous levels. Masoor was an exception, which fell by Rs100 on selling by importers.
The rice sector followed them partly owing to pressure on ready supplies and partly to higher export and rose under the lead of basmati, IRRI-6, up by Rs10 to Rs50. But the largest rise was noted in Kernal type of basmati, which rose by Rs200 on reports of higher export demand.
IRRI-9, on the other hand, was an exception, which fell by Rs100 in the absence of fresh demand from exporters followed by hasty selling by local stock holders.
Among other essentials, sugar and wheat showed fractional rise of Rs5 to Rs15 but ready offtake remained slow in the absence strong demand by flour mills.
Cereals, on the other hand, showed divergent trend and while maize was quoted higher by Rs25, bajra fell by Rs75 t0 100 per bag, with jowar remaining unchanged from the previous level.
Trading on the oilseed sector failed to pick up as local supply position was fairly comfortable and end product users made routine buying.
As a result, prices of cottonseed, rapeseed, castor seed, were held unchanged amid stray business, while til rose by Rs100 per 40 kg on reports of higher export sales.
Oilcakes tended higher by Rs20 to Rs40 for cottonseed cakes amid reports of short supply, while rapeseed cakes were marked down by Rs2 amid slow trading.—M.A.
PRICES of some essential items on the Karachi wholesale commodity markets, during the post-budget trading week, witnessed fresh increase instead of showing any decline, as subsidies failed to check fresh flare-up, floor brokers said.
