PRICES of essential items during the previous week showed mixed trend on the Karachi wholesale commodity markets as the commercial dealers played on both sides of the fence amid conflicting reports on the size of arrivals from upcountry markets and ready position.

While wheat prices eased further modestly because of fall in demand from Afghanistan and a standoff on the export front, sugar early rose sharply followed by reports that the government has allowed the export of 0.200 million tons of the commodity and raised import duty to 30 per cent from the previous 20 per cent to protect the local industry.

Although, the Punjab millers did start the crushing season a bit late, the large carryover stocks will not allow any major change in the prevailing prices after the new crop starts arriving in the market, dealers said.

But contrary to all predictions the arrival of new crop triggered sellstops by the commercial houses and at the fag-end of the week prices fell sharply by Rs60 to 125 per bag. Gur and desi sugar prices also fell by Rs100 to 200 per 100kg bag.

The chances of export of the commodity are not that promising owing to higher production costs and low percentage of recovery, they maintain.

With an uncertain outlook about the revival of the demand by Afghanistan traders until war ends, the larger local supplies could again decrease prices during the next couple of weeks when new crop arrivals get normal, they said.

Wheat prices fell further by Rs5 despite reports that talks to export 0.200m tons of the commodity and 50,000 tons of rice with Iran are in advance stages. Local selling because of steady arrivals was a negative factor.

But the rice sector showed divergent trend amid slow ready offtake. While the fine types of Basmati suffered fall owing perhaps to selling prompted by slack exports and larger new crop arrivals, the IRRI varieties ruled steady followed by reports of good export business and fresh deals with the African and Gulf importers and rose by Rs10 to 25 per 100kg bag.

Market sources say the demand for fine types of rice including Kernal is not picking up owing to competition from other major producers including India. Higher prices being one of the reasons behind the low foreign demand. But later in the week both Basmati and Sela type of Basmati rose by Rs50 to 100 per bag, while Kernal types fell by Rs150. But they say the new season has just started and the demand for both IRRI and Basmati types are expected to pick up after the foreign buyers resume new year buying possibly by the end of the next month.

Unlike previous week, pluses did not show much changes as the demand was adequately met by sufficient ready supplies. Arrivals of some types of pulses from the upcountry markets were fairly steady, which in turn checked any undue price flare-up.

Beetle rose by Rs10 to 50, while Urad, gram suffered fall of Rs50, with all other types remaining pegged at the last close.

Guar followed the lead of other raw materials and rose by Rs10 on renewed mill-buying. New crop arrivals were steady.

Cereals showed mixed trend and while Bajra attracted selling and fell by Rs25, maize was quoted higher by Rs5 to 10. Jowar and barley were held unchanged.

Oilseed sector depicted mixed trend as rapeseed and cottonseed came in for active selling and were marked down by Rs10 to 20, til rose by Rs10 to 50, with castorseed staying unchanged.

The largest decline ranging from Rs43 to 54 per maund was noted in the cottonseed on selling triggered by the reports of larger new crop arrivals.

Oilcakes depicted divergent trend amid active trading while rapeseed cakes stayed firm, cottonseed cakes fell by another Rs3 on fresh selling prompted by steady new crop arrivals.—M.A.