Prices of essential commodities on the Karachi wholesale markets were stable during the last week as supply remained fairly comfortable after steady arrivals from the upcountry trading centres.

Wheat and some type of pulses, however, were exceptions which tended further higher followed by steady pre-Eid holiday buying by some of the leading stockists. Active trading was witnessed in the rice sector where private sector exporters were active buyers of the new crop of Irri coming steadily from the Sindh markets.

Prices remained steady followed by reports that a high-powered delegation will visit Kenya and Tanzania by next month on a big sale mission to some leading African countries where Irri type of rice is widely consumed.

The delegation hopes — based on initial spadework — to sell about 0.2m tonnes of the commodities during their visit, brokers said.

Demand from the Gulf countries is also said be picking up. Some of the leading importers from Dubai and Saudi Arabia have already made forward deals with the local exporters against which shipments are resumed.

An idea of aggressive sales of the new crop may well be had from the fact that three ships arrived during the last week to load about 25,000 tons of various types rice, notably Irri, both whole and broken. Unlike previous week, sugar prices rose by Rs20 to 25 per bag despite reports that some of the mills have resumed new crop crushing and arrival of new crop is possibly expected in the next week. The rise was attributed to procurement operations by the TCP.

Reports that the Trading Corporation of Pakistan has accepted offers from some of the mills totalling about 16,000 tons at the lowest offered price of Rs22,500 per tonne against its first tender of 0.1m tonnes.

The TCP has again floated a tender of 74,000 tons of the commodity from the local mills to be opened on November 30, which in turn has a positive impact on the sugar prices.

Although, the government has directed the sugar mills to resume the new crushing season from November 15, indications are that the official deadline may not be met as some of the mills are reluctant to comply with the official directive for various reasons, market sources fear.

Wheat prices maintained their upward trend owing to pressure on the supplies and as a result prices were marked further higher by Rs40 per bag, despite talk of import of half million tonnes from various sources to make up the local shortfall. However, the import duty waiver of 25 per cent is expected to lower the prices in coming weeks.

On other essential counters, prices of pulses showed mixed trend, while beetle and gram whole posted sharp gains ranging from Rs280 to 380 per bag on strong pre-Eid demand. Gram dal, urad and moong varieties were firmly held at the last levels amid falling demand. Peas and masoor dal were exceptions which fell by Rs10 to 50.

Guar also suffered modest fall of Rs30 on selling followed by reports of steady new crop arrivals from the Sindh markets and selling by commercial houses.

Rice prices were firmly traded at the previous levels followed by the revival of foreign demand and reports of fresh export agreements. Barring broken Irri which fell by Rs20 to 25 all other types, including sela and kernal types of basmati were held unchanged.

Cereals showed steady trend as prices of bajra and maize were firmly held at the last levels amid active trading, while jowar suffered a fresh decline of Rs40 to 50 on selling prompted by steady new crop arrivals. Barley was also firmly held at the previous levels. Oilseed sector turned mixed. Rapeseed suffered fall of Rs50 to 70 followed by selling owing to larger arrivals from the Sindh markets. Weak oilcakes market also worked against the sentiment.

Cottonseed, castorseed, til and groundnuts lacked normal trading interest and were quoted unchanged at the last levels amid slow ready offtake. All other major seeds including rapeseed, cottonseed were traded at the previous levels.

Oilcakes ruled weak owing to steady arrivals followed by selling by dealers. As a result, prices of both cottonseed and rapeseed cakes were marked down by Rs4 to 10 per bag.—M.A