THE prices of some essential items on the Karachi wholesale markets rose modestly up as the supply position remained tight owing to slow arrivals from the upcountry markets. The dealers said that the arrivals from the upcountry market were still to pick up as cargo haulers were demanding higher fares because of an increase in the petroleum prices. As a result, the commercial houses limited their buying from the interior markets apparently hoping a fall in the fares.

The post-Eid holding trading week on the commodity markets remained relatively dull as the sellers were asking lofty prices, while buyers were not inclined to go beyond their limits, they said.

The physical activity, therefore, remained on the lower side despite the fact that some brokers were in short supply and failed to meet the selling orders of their customers.

Among essentials, the prices showed an upward trend on the reports of wheat exporters’ entry into the market after 15 per cent duty waiver. The commercial exporters were said to be active and probing potential markets, including Afghanistan.

But the market sources ruled out the possibility of any major changes in the prevailing price trend as the commodity was not in a short supply after the import of about half a million tons of the commodity, late last year, to meet the shortfall in supplies.

There was a relative quiet on the sugar front amid conflicting reports about the prevailing procurement price tussle between the mills and the growers. However, price situation remained apparently squeezed as new crop arrivals from the mills were on the lower side, they said.

According to surveys carried out by the mills and other agencies, the size of the crop was estimated below three million tons which could well mean further increase in the prices in coming weeks, they added.

On the export front, prices of all types of rice including IRRI and Basmati varieties remained stable throughout the week despite an increase in the physical shipments against firm export orders.

Brokers said that despite higher export, prices did not show changes in the backdrop of another bumper crop and steady arrivals from the upcountry markets. Prices were expected to stay firm during the coming weeks also.

Prices of some essential items rose sharply high at the fag-end of the previous week as the pent up demand emerged followed by reports of short supply partly because of slow arrivals from the upcountry markets and partly to holding back of stocks by some local dealers.

Dealers said that other aiding factors were high fares charged by the cargo haulers as transport problems caused shortage of the commodities supposed to arrive from the upcountry markets.

Pluses led the list of those essential items which witnessed a sharp price flare-up under the lead imported stuff. Urad was leading among them which spurted by a massive Rs400 per bag followed by some other types, they added.

Peas and moong types followed it which rose by Rs30 and 175 per bag 100kg bag and so did some others. Gram whole and gram dal were traded at previous levels owing to comfortable ready position despite higher exports.

Among other essentials, wheat showed a modest rise of Rs5 followed by reports that the export of the commodity could push prices further up.

Sugar prices stayed bullish at retailers’ level where prices were quoted around Rs30 per kilo and Rs32 in the interior trading centres. New crop was arriving on a modest scale but the quantity was too small to influence the prices lower.

But on the wholesale market, prices did not show any changes in the last couple of weeks as the commodity was not available and the bulk of it was finding its way into the market, dealers said.

Rice sector showed steady trend as new crop arrivals were on the higher side and did not allow any price changes despite higher physical shipment during the week.

The reports of a record crop and larger arrivals, notably of IRRI varieties from the Sindh market did not allow any major change in the prevailing prices despite an increase in the local demand.

As a result of arrivals, the prices of major seeds, including cottonseed, til and castorseed were held unchanged.

Rapeseed was an exception which rose by Rs100 to 300 for Mirpurkhas and Nawashah varieties.

Oicakes also posted gains ranging from Rs5 to 7 for rapeseed and Rs10 to 15 for cottonseed cakes.—M.A.