A SUSTAINED price flare-up on the rice counter featured the last week’s trading on the Karachi wholesale commodity markets followed by reports of short supply owing to slow arrivals from the upcountry trading centres.

Private sector rice exporters were worried over the developing situation as increase in local prices is well above those at which they have made forward sales to foreign importers, market sources said.

“We may be declared defaulter if stockists did not release fresh stocks to ease prices from the current higher levels,” says a leading exporter.

An idea of price flare-up may well be had from the fact that sela variety was quoted higher by Rs400 to 800 per bag, while IRRI types were quoted higher by Rs10 to 310 per bag of 100kg.

Physical trading modestly picked up as commercial houses extended modest support at the falling prices on some of the essential counters. Arrivals from the upcountry trading centres were normal, which triggered selling on the cereal sector, while some of the essential items were traded around previous levels amid falling ready demand.

Dealers said imported stuff, notably pulses on the other hand eased further from the recent higher levels as leading importers again indulged in selling followed by reports of arrivals of fresh consignments.

Larger decline was, however, averted as upcountry dealers remained active buyers at the falling prices, which in turn allowed the market to finish around the previous levels, they added.

Unlike previous week, much of the activities remained confined to industrial raw materials, but prices generally fell on those counters where over supply was reported.

On the export front, physical shipments of rice were maintained on higher side as private sector exporters judiciously adhered to their shipment deadlines to various countries including Iran.

Prices of different varieties showed sharp rise above the previous levels, market sources said demand for IRRI varieties remained on the higher side. They said some of the leading private sector exporters made fresh covering purchases against their forward sales to various countries, at higher rates to honour their export contracts.

Fine varieties of basmati including sela and kernel also showed upward change owing to fresh support followed by reports of fresh export deals despite higher local prices, brokers said.

There was again a relative quiet on the sugar and wheat fronts where prices did not show much change despite the fact that there was a pressure on ready supplies.

On other essential counters, prices of some types of pulses fell by Rs100 to Rs150 for gram whole and dal, but urad rose by Rs310 on reports of short supply. Wheat on the other hand rose by Rs5.

Cereals remained under pressure and fell by Rs25 to Rs50 for jowar and Bajra, while maize was quoted higher by Rs50 to Rs55 on local demand. Jowar followed it, up by Rs15 to Rs25.

Barring a sharp rise in rapeseed Nawabshah variety, which rose by Rs90 to Rs105 per 40 kg bag and did cotton seed, up by Rs40.00, other major seeds were firmly held at the last levels under the lead of castor seed and til.

Oilcakes showed divergent trend amid slow trading. While rapeseed cakes rose by Rs5, cottonseed cakes were marked down by Rs10.-—M.A.