Prices of essential items showed sharp increase on Karachi wholesale commodity markets last week. Supplies from the upcountry trading centres were far below the normal weekly figures.

Dealers said the drying up of supply lines may have been the result of holding back of stocks by the upcountry wholesalers or the brokerage houses.

We did not attribute the current price flare-up to hoarding by some leading local commercial houses, there may have been other factors as well, they added.

A considerable decline in ready offtake by the retailers and some wholesalers did not cause dent in the prices. The buyers and sellers, both maintained a status quo at least for the near-term.

An increase of Rs50 in wheat worried all, as this will hit rich and poor alike in coming weeks. The new crop was still in the sowing stage and will arrive in April, next year.

The sharp increase in its price defies the no shortage claim of the commodity by the government.

Prices could rise further if supplies were not reinforced from the official godowns.

A great deal of price changes were recorded in pulses as some leading importers did not release the normal weekly supplies to their agents.

This resulted in across-the-board increase in the imported stuff but local varieties, notably gram dal and whole, were held unchanged despite exports of a substantial quantity to India, and the reports of pressure on local supplies owing to the pre-Ramazan buying.

Masoor dal rose by Rs50, while masoor whole suffered a fall of Rs100. Urad was marked up by Rs150 with all other varieties remaining unchanged after the early rise.

Stability in gram prices was attributed to a bumper crop which was harvested in April last.

Despite export to India, the local stock position was still pretty comfortable.

Rice on the other hand reacted bullishly to the reports of pest attack in some areas of the upper Sindh rice belt.

Demand from the private sector exporters to cover their forward sales of the new crop was another positive factor, they said.

Basmati and sela varieties finished at the previous levels followed by reports of pest attack on standing crop in upper Sindh rice belt, dealers said.

Irri-broken, basmati broken and kernal types were the only exceptions, which rose by Rs10 to 50.

The largest rise of Rs200 per bag being in broken basmati. Both Irri Sindh and Punjab varieties were traded at previous levels amid slow business followed by the reports of slack export demand.

Sugar prices also remained stable and were held unchanged at the last levels owing to easy supply and so did desi sugar and gur followed by the reports of new crop arrivals from Sindh markets.

Guar prices were again held unchanged in the absence of strong demand from the mills and were firmly held at the last levels amid slow trading.

Cereals showed quietly easy trend as maize was quoted lower by Rs10. Bajra and jowar remained firmly held at the last levels amid slow trading. Barley followed them in the absence of export demand.

Oilseed sector again showed mixed trend followed by the reports of increase in arrivals of cottonseed from the Sindh ginneries. Prices suffered sharp decline amid active selling by the ginners.

Rapeseed on the other hand came in for strong support followed by the reports of firm oil cakes market and posted gains ranging from Rs25 to 100 per 40kg for both Mirpurkhas and Dadu varieties.

Tight supply was another bullish factor. Til was held unchanged.

Oilcakes showed mixed trend, while cottonseed cakes suffered sharp fall. Rapeseed rose by Rs15 in sympathy with the increase in rapeseed.—M.A