February 11, 2008	Monday	Safar 03, 1429

PRICES of some essential items last week rose further high as supply position did not improve after arrivals from upcountry trading centres remained below normal.

Sources said the market appeared to be in the grip of leading stock holders who set the trend for the market to follow over the week partly owing to holding back of stocks and partly to keep prices according to their pre-determined levels.

Some easing was, however, witnessed on the counters of essentials followed by selling triggered by reports of steady arrivals from upcountry markets, mainly Sindh, they said. Sugar prices also remained on the lower side because of mills selling on the open market to clear their backlog of unsold stocks, some others said.

The market-talk of a record production of about 4m tons against the local consumption of 3.2m tons, was said to be the main factor behind the current turmoil in the sugar market.

Industry sources said the government had allowed export of surplus sugar to any country at a competitive rate. They said a forward deal for 0.3m tons at $335 per ton to Sri Lanka had already been initialed and shipments were expected to start by next couple of weeks.

Despite a bumper crop, rice market remained tight as prices of both Irri and fine types remained firm around all-time high levels under the lead of basmati, which was quoted around Rs7,000 per bag.

Market sources said the interesting feature was that importers were not deterred by the higher asking prices and were said to be actively buying at the current rates.

Imported stuff mainly some varieties of pulses followed them, which steadily rose to their new record levels under the lead of masoor and some others.

There was, however, relative calm on the industrial raw material counters as prices generally maintained last week’s levels under the lead of major oilseeds.

Owing to late selling on counters of some of the essential items, the overall trend of the market was mixed followed by active bouts of buying and selling.

Largest rise was again noted in the prices of some type of pulses under the lead of masoor whole and masoor dal, which were quoted higher by Rs300 to Rs400 per bag of 100 kg.

Some types of rice, notably kernel type followed them, which showed sharp increase of Rs400 per bag, while basmati rose by Rs50, followed by Irri-6, off by Rs15. Other types were traded at the previous levels despite reports of higher exports.

Wheat also rose by Rs50 per bag as mill demand remained on the higher side amid reports of slow arrivals from official sources and upcountry markets.

Sugar again remained under pressure and was quoted lower by Rs150 per bag, while fine type was quoted higher by Rs50 followed by reports of steady arrivals from Sindh mills.

Desi sugar and gur followed them, which were marked down by Rs100 to Rs200 per 40 kg on selling by wholesalers followed by reports of steady new crop arrivals and falling demand from Afghanistan.

Major industrial raw materials including cottonseed, rapeseed, til and cottonseed did not show much change and were held at the previous levels as supplies matched the local demand.

Cereals were firmly held at the last levels under the lead of maize, jowar, barley and bajra.

Oilcakes ruled unchanged for rapeseed cakes, while cottonseed cakes were quoted higher by Rs20 on late demand from crushers.—M.A.