PRICES of essential items remained stable around previous levels during the last week in the absence of fresh buying by both the retailers and the wholesalers. But late week buying in some type of pulses pushed their prices further higher.

Haji Suleman of Usman Traders said fresh increase in prices was caused partly by fall in arrivals from upcountry markets and partly to holding back of fresh stocks of imported stuff by the importers.

He said the fresh rise added to last week's sharp increase in price of pluses to an inhibiting higher levels has significantly been intensified owing to rising demand from the upcountry traders who did make fresh buying apparently anticipating fresh increase if supply position did not improve.

Some of the leading commercial houses, however, predicted a modest fall in prices of some of the essential items amid hopes that cut in diesel prices may cause an identical fall in freight and benefit may be passed on to general consumer in the coming weeks.

However, the cut may not be that significant as to cause major dents in the prevailing higher prices but it may check fresh increase as far as local stuff is concerned, they added.

Rice prices are expected to go up in coming weeks owing to 100 per cent increase in import duty by Iran on imports from Pakistan. Pakistan is one of the largest exporters of rice to Iran but it would be affected if steps were not taken up with the ministry of that country.

On the sugar front, prices are expected to stay on the higher side after the ex-factory price agreement between the government and the mill-owners. The price has been fixed at Rs31.00 per kilo, which rises to Rs34.00 after adding overheads and other expenses to it.

But leading dealers said the future price outlook will largely depend how mill-owners release their stocks to their agents in the major commodity markets and squeeze on the part of them could push prices to the last year's level of around Rs40 per kg.

Among other essential items, wheat prices remained stable around the previous levels as supplies matched demand in the absence of exporters from the market.

The late week advance in pulses was attributed to holding back of stocks by the leading dealers amid rising demand from interior. Sharp increase ranging from Rs100 to Rs250 per bag was noted in masoor dal, gram and moong.

Urad was an exception, which came in for active selling as supply position improved and was quoted lower by Rs125 per bag.

Rice: IRRI-6 and basmati prices showed modest rise of Rs5 each, while IRRI broken was quoted lower by Rs10, with sela type remaining unchanged at previous level.

Among other essentials, wheat showed a modest fall of Rs5 but trading remained dull in absence of exporters and local mills. Supply position remained satisfactory thanks to steady arrivals from the upcountry markets.

Cereal sector showed mixed trend. While prices of bajra fell by Rs50,maize and Jowar were held unchanged. Barley rose by Rs50 on active support extended by the processors and exporters.

Oilseed sectors did not show much change as supplies were enough to meet the local demand of crushers. As a result, prices of major seeds including rapeseed were quoted unchanged.

But on the other hand cottonseed showed a modest rise as mill demand picked up and ginners held on to their positions anticipating further increase in prices owing to a short cotton crop.

Major export items, notably castor seed and til, however, did not show much change and were firmly held at the previous levels.