PRICES of essential items on the Karachi wholesale commodity markets last week remained stable, but generally rose followed by reports of pressure on ready supplies.

Rice sector was, however, an exception where prices fell sharply under the lead of IRRI and some types of basmati on active selling followed by reports of steady new crop arrivals, dealers said.

Meanwhile, a rice loader sailed out of the port with a consignment of new crop after about two months gap, market sources said.

Arrival of some of the commodities from upcountry markets were on the lower side of the weekly average, which dealers said, also contributed to the price flare-up on the pulses sector.

They said the official increase in wheat prices to Rs465 per bag of 100 kg is well above those at which the commodity was available on the local markets but the current increase is expected to be reflected in local prices.

“Increase in the price of any essential items generally has sympathetic impact on the other,” they said and feared that prices of other essentials could also rise.

Prices of rice are already higher apparently creating export parity problems for the private sector exporters, but they are worried over the reports of damage to the crop in the Sindh rice belt owing to floods and heavy rain.

Indications are there that rice export target of last year’s one billion dollar may not be achieved as prices of both fine varieties and IRRI are already on the higher side, market sources said.

On the industrial raw materials front, prices also showed increase as supplies lagged far behind demand partly because of holding back of stocks by stockists.

Among essential items, larger fall was noted in prices of rice varieties both IRRI and some fine varieties on selling prompted by pick up in new crop arrivals from Sindh markets. However, market sources said the re-entry of rice exporters on the market could again push the prices higher. Prices of both IRRI and sela types were marked down by Rs120 to Rs400 per bag of 100 kg. Whether or not the benefit of lower rates will reach the retailers will be known by next week.

Wheat rose by Rs35 followed by repots of increase in official prices for flour mills, while sugar prices remained stable around previous levels.

Prices of some varieties of pulses changed during the week, but at weekend reverted to previous level, but ready off take was large.

Cereals showed mixed trend. While jowar rose by Rs40, bajra and barley fell by Rs20 to Rs25 with maize remaining pegged at the last levels.

Oilseed sector lacked normal trading interest as supply position was said to be comfortable. Prices of major seeds including rapeseed, cottonseed and castor seed were held unchanged and so did til.

Oilcakes were quoted unchanged, while cottonseed cakes suffered fresh fall on renewed selling prompted by larger new crop arrivals.—M.A.