Prices of most of the essential commodities resumed their upward drive as the last trading week witnessed all-round increase in prices followed by reports of pressure on ready supplies from the upcountry trading centres.

Floor brokers said arrivals of essential commodities from the major Sindh commodity markets were still far below the average daily supplies owing to higher freight rates and falling stocks with the commercial and brokerage houses.

They said the supply position would take a week or so to get normal.

A major price flare-up was noted in the rice and wheat followed by some types of pulses, which are widely used, but on the other hand cereals came in for renewed selling in the absence of falling demand.

The notable exception was sugar and its allied products, notably gur, which remained under pressure owing to steady new crop arrivals from the Sindh mills, dealers said.

The fresh price flare-up on the rice counter was attributed to higher exports, notably of Irri to various countries under the forward deals, they said.

The other aiding factor was reports of damage to recently harvested paddy because of rain as growers have no storage facilities and bulk of the crop was in the open fields, they added.

Growers from the Sindh rice belt also complained about the procurement operations of the Passco whose high-ups have indicated to purchase half a million tons of the commodity initially.

But the current increase in prices was attributed to higher exports and active covering purchases being made by the private sector exporters to meet their shipment deadlines.

Unlike the previous weeks there was however a relative quiet on the basmati rice counter where prices generally held on the previous level indicating that last year’s unprecedented rise in prices was not on the cards, some analysts said.

The rice production is estimated at 6.5m tons during the current season, which they said, should keep prices well below the last year’s all-time higher rates.

Among the essentials, wheat posted sharp rise of Rs250 per bag apparently on post-eid pent mill-demand. But dealers said sharp increase was warranted by supply position in the backdrop of heavy imports totalling about 2.5m tons.

The increase in wheat prices had a positive impact on the other essential items, notably some pulses.

After initial rise, prices of pulses remained unchanged at the last levels barring gram dal and beetle amid modest activity. Supply position later in the week showed a considerable improvement and did not allow fresh rise in prices.

Rice sector showed firm trend followed by reports of higher export and prices rose by Rs200 to Rs250 per bag for new crop Irri-6 followed by reports of active short-covering by the private sector exporters against the forward sales. Broken Irri also rose by Rs50.

Sugar remained under pressure on selling prompted by reports of steady new crop arrivals from the Sindh market, but on the other hand desi sugar was quoted unchanged. Gur on the other hand showed sharp rise of Rs200 to Rs400 per 40 kg on strong foreign demand.

Cereal sector on the other hand remained under pressure in the absence of demand from the local users. Prices of maize, jowar fell by Rs100 to Rs200 amid active trading. Guarseeds came in for active mill demand and rose by Rs100 per bag of 100 kg. Oilseed sector again showed quietly firm trend as prices of major seeds including rapeseed, castorseed were held unchanged as supplies matched the local demand.

Cotton remained under pressure and shed another Rs50 per maund as mill demand later turned shy owing to problems on the export front.

But til came for strong support from the exporters and was quoted higher by Rs400 to Rs700 per 40 kg amid large ready offtake at the rising prices.

Oilcake also showed firm trend as prices of cottonseed cakes rose by Rs35 but rapeseed cakes were held unchanged at the previous levels amid active mill ready offtake.—M.A.