June 23, 2008	Monday	Jamadi-us-Sani 18, 1429

FRESH decline in prices of most varieties of rice highlighted the trading on the Karachi wholesale commodity markets last week under the lead of IRRI and fine basmati varieties.

Arrival of essential commodities from upcountry markets were below normal as commercial traders and brokerage houses were not inclined to flood Karachi markets, to keep prices on the higher side, said a local broker.

Fresh decline in rice prices for the third consecutive week was partly attributed to the absence of strong consumer demand and partly to release of fresh stocks by local stock holders and some private sector exporters, dealers said.

They said fixation of minimum export prices for rice varieties seemed to have made its export a bit expensive and the stock held by exporters found its way into the local market, which in turn depressed the prices from the recent all-time high levels.

Although prices of rice and other essential items were still sharply higher, indications were there that the process of consolidation had started and the prices will fall further.

Physical shipments of the commodity seem to be at a standstill as no rice loaders called on the Karachi port in the recent past, suggesting that the sale offers by local exporters did not meet the criteria of minimum prices, some dealers said.

Some others said rice prices may stay around the current levels or slightly below depending on local demand as the new crop was still two months away.

They, however, said the early sown rice crop in lower Sindh was expected by the end of August though on a modest scale, which would have no impact on higher prices.

Wheat prices, on the other hand, remained unstable despite higher imports apparently owing to hoarding by some commercial traders and stockists. As a result, prices again rose from previous week’s level, consequently increasing flour prices, notably at the retail levels.

Market sources said sale of flour at subsidised rates at official consumer outlets was maintained at a steady pace but owing to problems in the system larger section of the poor remained deprived of the facility.

Among other essential items, price of sugar also showed signs of increase despite a record production of 4.5 million tones.

Fresh decline in prices of some varieties of rice, notably kernel type, was noted which ended lower by Rs400 per bag. However, sela variety did not show any change.

IRRI-9 remained under pressure partly owing to slack demand by exporters and partly to steady arrivals from Sindh markets and fell by Rs300 per bag but IRRI-6 managed to finish unchanged after early fall.

Basmati broken remained under pressure on local selling followed by reports of fall in export demand and was marked down by Rs200-Rs300 per bag of 100 kg. But, on the other hand, basmati type, which was quoted lower earlier, recovered from the early loss of Rs100 and was quoted unchanged at previous levels.

Barring a fall of Rs50 in urad variety, all other pulses managed to close higher from their early lower levels on selling by importers and local stockists on late buying by the Punjab dealers.

Among other essentials, wheat remained in active demand of flour mills and was quoted higher by Rs80 to Rs90 per bag to quote at the highest ever-level of Rs2,255.

Sugar also remained in active demand from general consumers and was quoted further higher by Rs80 but gur and desi sugar were held unchanged.

Major oilseeds again lacked normal trading interest followed by reports of comfortable ready position. As a result, prices of major seeds including cottonseed, rapeseed, castor-seed and til were held unchanged.

Cotton prices also did not show much change in the absence of falling mill demand and was firmly held at the last level of Rs3,800 per maund.

Oilcakes ruled unchanged for rapeseed cakes, while cottonseed cakes suffered a modest fall of Rs25 on selling by Sindh ginners.—M.A.