FLARE-UP in prices of some varieties of rice again dominated the trading on the Karachi commodity markets as reports of short supply continued to trigger panic buying among both the local consumers and the retailers.

After the harvest of a record crop of 5.5 million tons during the last season, which in normal conditions should have stabilised prices on the local markets, prices of most varieties of rice had already touched a record high and where it would end nobody knew, dealers said.

There were conflicting reports about the unprecedented rise in rice prices. Some said the commodity was in the grip of leading investors who were not inclined to loosen their grip over the prices. Others claimed that bulk of the crop had already been exported at lower prices. But the latest export figures tell a different story.

However, one thing appeared certain that even another record rice crop might not ensure a fair price for the general consumers after its arrival on the market sometime in early September.

“Both rice and wheat have now assumed the role of a trading commodity and moneyed investors are setting their future price pattern after having regulated the supplies,” said a dealer.

Even prices of IRRI type, which is being traded on the National Commodity Exchange on forward counter, were also increasing daily in line with local trading, he said.

But, on the other hand, wheat prices, though ruling high despite arrival of new crop from upcountry markets, showed a modest fall as leading stockists sold part of their stocks fearing fresh decline with steady increase in arrival of new crops, market sources said.

However, there are reports that at some crop centres the commodity was being sold well below the procurement price of Rs625 per 40 kg by needy farmers to meet their immediate financial needs, they said.

Among other essential items, imported varieties of pulses again rose from previous levels amid reports of short supply as some importers were holding on to their stocks to keep prices on the higher side.

Gram whole and dal, however, suffered fall on selling prompted by reports of steady new crop arrivals from upcountry markets but failed to have any sympathetic bearish impact on other varieties.

Increase in prices of some rice varieties including IRRI and basmati, again featured in trading on the counters of essentials where both were quoted higher by Rs200 to Rs300 per bag of 100 kg.

The largest increase was noted in super type basmati, higher by Rs700 amid reports of short supply and holding back of stocks by local traders.

Wheat, which earlier showed a modest fall, rose again after mid-week amid conflicting reports of new crop arrivals from Sindh markets and was quoted higher by Rs20.

Pluses maintained their upward drive in sympathy with increase in prices of other essential items and rose by Rs125 to Rs300 for moong and masoor varieties, while others remained unchanged under the lead of masoor dal.

On the other hand, gram and gram dal came in for renewed selling followed by reports of steady arrivals and market talk of higher crop, and fell by Rs100 to Rs125 per bag. Urad followed it and was marked down by Rs50.

Cereals also remained in strong demand and were quoted higher by Rs75 to Rs200 per bag higher for maize and bajra followed by reports of fall in arrivals from upcountry markets.

Oilseed sector came in for renewed panic buying under the lead of rapeseed followed by reports of short crop in Sindh. Prices of all varieties were quoted higher by Rs375 to Rs400 per 40 kg for the second time during the current season.

Cottonseed followed them owing to a short cotton crop and was higher by Rs50 to Rs75 per 40 kg owing to short supply and increased demand from crushers.

Other seeds including til, castor seed and groundnuts did not show much change and were firmly held at previous levels amid light trading.

Oilcakes, on the other hand, showed sympathetic increase in line with major seeds and were up by Rs40 to Rs75 respectively amid active trading.—M.A.