PRICES of some essential items last week rose further high as supply position did not improve after arrivals from upcountry trading centres remained below normal.

Sources said the market appeared to be in the grip of leading stock holders who set the trend for the market to follow over the week partly owing to holding back of stocks and partly to keep prices according to their pre-determined levels.

Some easing was, however, witnessed on the counters of essentials followed by selling triggered by reports of steady arrivals from upcountry markets, mainly Sindh, they said. Sugar prices also remained on the lower side because of mills selling on the open market to clear their backlog of unsold stocks, some others said.

The market-talk of a record production of about 4m tons against the local consumption of 3.2m tons, was said to be the main factor behind the current turmoil in the sugar market.

Industry sources said the government had allowed export of surplus sugar to any country at a competitive rate. They said a forward deal for 0.3m tons at $335 per ton to Sri Lanka had already been initialed and shipments were expected to start by next couple of weeks.

Despite a bumper crop, rice market remained tight as prices of both Irri and fine types remained firm around all-time high levels under the lead of basmati, which was quoted around Rs7,000 per bag.

Market sources said the interesting feature was that importers were not deterred by the higher asking prices and were said to be actively buying at the current rates.

Imported stuff mainly some varieties of pulses followed them, which steadily rose to their new record levels under the lead of masoor and some others.

There was, however, relative calm on the industrial raw material counters as prices generally maintained last week