Sharp increase in prices of sugar featured the trading on the Karachi wholesale commodity markets last week despite reports that the TCP is directed to import another one million tonnes of the commodity to ease the price situation.

Prices of while sugar rose by Rs235-Rs245 per bag of 100 kg over the week.

The TCP has also been directed to release about 0.4 million Tonnes of the commodity earlier procured by it to supplement the local supplies. However there was no easing in the price situation, dealers said.

Meanwhile, prices of essential items on the wholesale commodity markets remained stable during the last week as arrivals from the upcountry trading centres were fairly large and adequately met the ready demand.

Arrivals of most of the commodities were held up in the week preceding the Eid holidays as cargo haulers remained busy in transporting sacrificial animals to the city and back to their interior destinations, which could find suitable buyers. But the post-Eid holiday weeks arrivals of both industrial raw materials and essential commodities were about normal and enough to meet the local demand, prices mostly stayed unchanged at the previous levels, dealers said.

The other stabilizing factor was that speculative traders were conspicuous by their absence followed by reports that there is no pressure on supplies from the interior markets nor there are reports of holding back of stocks by some of the leading stockists, they said.

Although reports coming from the local markets indicate an increase in prices of sugar at the retailers end, there was a relative quiet on the wholesale front as prices did not show any change.

Arrivals of the commodity from the Sindh sugar mills was fairly steady as millers were not inclined to hold positions apprehending some official steps to ease the price situation, market sources said.

They also said modest quantities of the commodity are also finding its way into the local market, which in turn has reinforced the ready position and further increase in prices.

Among the other essential wheat also did not show uneven price movements, although despite the fact that mill demand remained on the higher side but fully matched by the release of stocks from the official sources, they said.

On the export front, physical shipment of rice against the previously signed export deals were maintained on the higher side. Prices, however, did not show much change despite reports of Chinese interest.

Meanwhile, rice exporters tried to speed up export to some African countries of IRRI varieties after Kenya deferred raising of import duty from the current 35 percent to 75 percent on the previously singed deals,they said.

In line with a price flare-up in sugar, some other essential items also rose in sympathy under the lead of gur, desi sugar and some varieties of rice on reports of higher exports. IRRI broken was an exception, which fell by Rs.10.00 amid local selling.

After holding on to the last levels, wheat suffered a modest decline at the fag-end of the week, off Rs5 amid comfortable supply position.

Pulses on the other hand were an exception, which fell where changed under the lead of gram whole and gram dal and peas, off Rs 50 to 75,while all other types were traded around the previous levels as supplies matched the local demand.

Major export items remained firm around the previous levels with the exception of guar, which posted a modest rise of Rs.50.00 per bag on reports of slow arrivals from the upcountry markets.

Cereals also maintained their upward drive and posted gains ranging from Rs.10.00 to 25.00 for bajra and maize, while jowar was traded at the previous levels amid slow ready offtake.

Oilseed sector showed firm trend amid active support extended by the crushers. Prices of both cottonseed and rapeseed were firmly held at the previous level aided by higher oil and cakes markets.

Castorseed and til lacked normal local and export demand and were traded Around the previous levels, Stray business on local account was, however, noted at the unchanged rates.

Oilcakes on the other hand remained in strong demand followed by reports of pressure on supplies and were quoted higher by 9.00 to 12.00 for both rapeseed and cottonseed cakes.-M.A