A sharp increase in sugar prices featured the last week’s trading on Karachi’s wholesale commodity markets, where other essential items showed mixed trend.

The flare-up in sugar was attributed to reports that the government had decided to purchase 0.2 million tonnes of the commodity from sugar mills to bail them out from the production glut.

The government planned to build up a buffer stock for price regulation.

General trend was mixed as the price change was orderly, notably on essential counters due to comfortable supply.

Wheat and some types of rice and pulses fell modestly from their peak levels, but most of the industrial raw materials were traded higher amid reports of pressure on ready supplies.

However, there were no reports of holding back of stocks by the leading commercial houses or the stockists. Arrivals remained fairly steady as far as the essential items were concerned.

Floor brokers said the instances of pre-Ramazan price flare-up notably on the essential counters were lacking, though there were reports of above the normal increases at the retailer level.

The decline in wheat and some varieties of rice was modest which reflected normal supply both from the local and the upcountry trading centres, they said.

Sugar prices rose sharply higher by Rs60 to 130 followed by the reports that the government has indicated to create a buffer stock of 0.2 million tonnes after having procured the commodity from the millers to ease their unsold positions.

According to official figures released by the Pakistan Sugar Mills Association (PSMA), its members still held an unsold stock of over half million tonnes from the previous crop and were reluctant to resume near year crushing by November 1, as directed by the government.

The proposed buffer stock may enable the mills to resume new crushing season well in time, allowing the growers a breathing space between the sowing and harvesting of wheat.

On export front, private sector exporters have secured orders for new crop and a ship is in the port to load 4,200 tons of the commodity.

On the pulses counter, moong and peas rose by Rs10 to 50, while gram whole and dal suffered loss of Rs10 to 30.

Urad was marked down by Rs50, with all other varieties remaining unchanged.

The decline was attributed to the selling owing to oversupply. Rice sector on the other hand showed mixed trend amid active trading followed by the reports of steady new crop arrivals from the Sindh markets.

Basmati and sela varieties rose sharply higher by Rs50 to 200 followed by the reports of pest attack on the standing crop in some areas of the upper Sindh rice belt, dealers said.

Irri-broken and basmati broken types were the only exceptions, which fell by Rs5, the largest fall of Rs200 per bag being in broken basmati.

Guar remained stable at the last levels despite slackened demand from the mills but supplies matched the modest mill-demand.

Cereals showed steady trend as prices of maize were quoted higher by Rs20, while bajra and jowar were firmly held at the last levels. Barley followed them in the absence of export demand.

Oilseed sector again showed firm trend followed by the reports of fall in arrivals. Rapeseed posted sharp gains ranging from Rs50 to 80 per 40kg followed by the reports of firm oil and cakes markets and pressure on the supplies.

Cottonseed were also traded modestly higher. Til and castorseed were traded at the previous levels amid slow trading.

Oilcakes stayed firm in sympathy with higher seed prices, and were marked modestly higher amid active mill-buying.—M.A