THE trading on the Karachi commodity markets last week witnessed another price flare-up as pressure on supplies continued to inspire panic buying both from retailers and wholesalers.

Floor brokers said ready position remained tight as arrivals from upcountry markets were not normal and consequently prices of essential items increased sharply.

The other factor which caused fresh price flare-up was reports of holding back of stocks by commercial houses and importers, notably of pluses sector, they added.

The ready off-take by both general consumers and the industrial sector was on the lower side as most of the time they kept to the sidelines awaiting softening in prices.

Wheat prices, on the other hand, showed modest decline partly because of fixation of procurement price at Rs510 per 40 kg and partly to release of fresh stocks of imported stuff to the mills.

Market sources said procurement price of Rs510 was well below the level at which new crop from Sindh was being sold by dealers and farmers. Official reports indicate that an average rate for the new crop is around Rs600 per 40 kg.

They said wheat price could further ease during the next couple of weeks after arrival of new crop in open markets.

According to market reports, the country is on the threshold of wheat harvesting and another record crop of around 25 million tons was expected, which would further lower the ruling prices.

On the other hand prices of essential items, including pulses and rice, maintained upward drive as short supply and higher export continued to fuel speculative increase in prices, dealers said.

An idea of price hike in rice varieties may well be have from the fact that the hitherto inactive basmati varieties also joined the race and were quoted higher by Rs500 per bag, while fine types including sela and kernal were traded at previous levels.

The notable feature of the week