SHARP fall in the prices of rice featured last week’s trading on the Karachi wholesale markets where some other essential items also came in for active selling and fell from the current higher levels.

Both IRRI and basmati types were quoted lower by Rs600 to Rs1,000 per bag. The largest fall of Rs1,100 to Rs1,300 was noted in basmati variety, market sources said.

Broken IRRI was, however, an exception, which was quoted higher by Rs800 per bag owing to short supply as local dealers had exhausted the previous crop stocks, floor brokers said.

They said selling originated both from the private sector exporters and the local commercial houses which unloaded their long positions ahead of the arrival of new crop and fear of fresh decline.

Market sources attributed the decline partly to improvement in supply position and partly to official action to check speculative increase in prices of essential items.

Rice sector, which during the last three months, had hit the all-time peak levels owing to larger exports and a good bit of hoarding by leading stockists, showed signs of softening, they said.

Some others said the fixation of minimum export prices by the government was the main factor behind the current fall as stockists sold their long positions in panic fearing further decline in prices.

They said new IRRI crop expected on the market during the next couple of weeks, also triggered selling from local commercial houses followed by reports of a bumper crop. According to initial surveys, the new crop is expected to be close to six million tones mark as compared to previous 5.5 million tones.

Owing to steep decline in rice prices, prices of other essential items also suffered sympathetic fall.

Unlike previous weeks, wheat did not show much change as supply position to the flour mills remained fairly stable as the government tried to supply flour to general consumers at lower rates.

Barring minor price changes here and there, the pulse sector remained dormant as supplies matched the local demand. Imported urad was, however, an exception which showed a modest increase of Rs63 per bag. Other varieties including gram whole, gram dal and masoor were traded at the last levels.

Wheat did not show much change and remained dormant at previous levels followed by some corrective steps taken by the government to check fresh rise in prices.

Sugar, on the other hand, showed a modest increase of Rs60 per bag and so did gur, which was marked up by Rs200 per maund. Desi sugar was held unchanged.

Among cereals, prices of bajra, maize, and barley were quoted higher by Rs50 to Rs100 because of active local buying and slow arrivals from upcountry markets.

Oilseed sector also showed firm trend as prices generally rose under the lead of cotton, castor seed, which were quoted higher by Rs50. But on the other hand cottonseed remained under pressure on selling caused by steady new crop arrivals. It was marked down by Rs50 to Rs100 per maund. Rapeseed and Til were again held unchanged.

Oilcakes showed divergent trend and while cottonseed cakes fell by

Rs100 to Rs140 per 50 kg in sympathy with fall in cottonseed, rape seed cakes were firmly held at the last levels amid active trading.— M.A.