AFTER last two weeks relative calm, prices of essential items resumed their upward drive again on the Karachi wholesale markets last week under the lead of pulses and finished on the higher side amid active trading.

Arrivals from upcountry markets suddenly dried up as dealers there reportedly held back supplies in an apparent effort to push prices further up, dealers here said.

They said the local stockists also followed the lead of their counterparts in the interior and the consequent pressure on ready supplies pushed prices sharply higher on some of the counters. “I don’t call the price flare-up as pre-Ramazan buying by some of leading retailers”, said a broker and added “its impact is likely to be felt by next week”.

But some local commercial houses said a section of stockists was already in the market and cornering stocks on some counters, which seemed to have caused the snap price flare-up on most of the selected counters.

They said the official machinery looking after prices of essential items both on the retail and wholesale market should keep an eye on the rising prices and should take corrective measures to restore normality on the essential counters.

The market advance was led by both gram whole and gram pulse, widely used during the month of Ramazan, and had a sympathetic impact on other items, they added.

They fear fresh increase in prices of both the items during the next week as those consumers who had not covered their Ramazan needs were expected to enter the market, pushing prices further higher.

Wheat and sugar followed them despite reports of satisfactory supply position and rose higher though modestly but caused price increases on other counters too.

Prices of some IRRI type rice is expected to drop amid reports that new crop from Sindh could reach the market any time as harvesting had already started in some areas.

On the other hand other export varieties remained under pressure under the lead of til partly owing to oversupply and partly to slack export demand.

The market advance was led by the pulses sector under the lead of peas, beetle, gram whole and gram pulse, which were quoted higher by Rs150-260 per bag of 100 kg. On the other hand masoor, urad, monng and other varieties were firmly held at previous levels amid light trading.

Among other essentials, wheat also maintained its upward drive though finished the week with a modest rise after supply position to mills improved.

Sugar also rose though modestly for the second week in a row apparently on active pre-Ramazan buying amid fears of fresh increase in prices in the holy month and short supply. It was quoted higher by Rs100-130 per bag.

Gur also came in for renewed support and was marked up by Rs200-400 amid reports of higher sales to Afghan importers and pressure on local supplies.

Rice sector remained relatively dormant as prices of both fine basmati and IRRI types were firmly held at last levels.

IRRI-6 was, however, an exception, which was quoted higher by Rs100 per bag amid reports of short supply. New crop from Sindh is keenly awaited.

Among cereals, bajra came in for strong support and was quoted higher by Rs200-300 per bag. On the other hand other cereals, including jowar and maize were traded at last levels.

Barley was an exception which came in for modest selling by local stockists followed by reports of slack demand by exporters.

The oilseed sector showed quietly steady trend where prices of major seeds including cottonseed rapeseed, castor seed and others were held unchanged at previous levels.

Til among them was an exception, which came in for strong support from exporters and was quoted higher by Rs400 per 40 kg amid slack trading.

Cotton on the other hand remained under pressure after early rise and was marked down by Rs175 per 40 kg on selling by ginners amid fears of fresh decline.

Oilcakes fell by Rs30 per 40 kg, while rapeseed cakes were firmly held unchanged at the last levels in sympathy with oil, which remained firm around previous levels.—M.A.