A sharp increase in sugar prices at the end of week featured trading on the wholesale commodity markets last week where other essential items also showed sympathetic rise.

Although sugar mills still hold an unsold stock of about 0.6 million tons in godowns, and its reports were reported to have caused pressure on supplies and the consequent price flare-up.

The Trading Corporation of Pakistan (TCP) announced to release another 25,000 tons of the commodity to ease prices situation but there appeared no immediate softening reaction.

According to market sources the commodity was being sold at Rs24 per kilo at retail outlets, while in wholesale market it was being quoted higher by Rs15 to 20 per 100kg bag.

Trading activity, however, remained light during the preceding week as commercial houses kept to sidelines most of the time amid reports of comfortable ready position.

Arrivals of some essential items from upcountry markets slowed down owing to hike in cargo fares. Leading cargo haulers remained busy in transporting bulk cargo, notably cotton and wheat to different destinations, while their weaker links raised the rates. However, price increase if any on some counters was orderly and in no way reflected panic buying by retailers or wholesalers, dealers said.

Price of wheat, which had been rising for last couple of weeks despite steady arrivals of the imported stuff, remained stable at previous levels as supplies were arranged by the official sources to both the mills and the provincial governments, brokers said.

But wheat prices around Rs1,280 per bag or Rs12.80 per kilo were on higher side and despite import of a million tons of the commodity from various sources, prices remained on up, they added. Wheat prices rose by Rs5.

Floor brokers said there were no reports of holding back of stocks of the local stuff; the current high rates had a chain bullish impact on the prices of some other essential items.

Reports from the export front were fairly encouraging as physical shipments of major items including rice and cement were maintained at high levels and shipment deadlines were judiciously met.

According to port sources, two rice loaders were in port loading about 22,000 tons of the commodity both for Bangladesh and some other destinations. Some more loaders were due during the next week.

Meanwhile, reports coming from the sugar sector show that some mills in lower Sindh sugar belt had already resumed their new crushing season from November 1, while others were in the process of following the suit during next couple of days.

Disturbing reports were, however, coming from Interior that some growers were not inclined to sell their sugarcane to mills and were not harvesting the crop to supply to mills. Millers were claimed to be facing a problem of short supply of sugarcane, market sources said.

On essential counters, prices of gram whole and gram dal suffered fall ranging from Rs25 to 50, while rice varieties were traded at last levels amid steady exports. Among other types of pluses, urad was marked sharply higher by Rs187.50 per bag.

Cereals, on the other hand showed sharp increase under the lead of barely and bajra which were quoted higher by Rs50 and 100 per bag, while maize and jowar were held unchanged.

Guar showed sharp increase of Rs125 to 150 per bag after early having fallen sharply on reports of steady arrivals from the upcountry markets. But processors kept to sidelines and did not make fresh commitments. Oilseed sector showed mixed trend while castorseed and til suffered fall ranging from Rs25 to 55 owing to falling export demand, all other types including rapeseed and cottonseed were traded at previous levels.

Oilcakes ruled unchanged for rapeseed owing to steady oil market, while cottonseed cakes suffered sharp setback of Rs17 to 25 on selling prompted by larger new crop arrivals from the ginneries.