Sugar on the wholesale market last week eased modestly from the all-time peak levels but was still on the upper side at retail outlets despite some corrective steps taken by the government to improve the supply position.

The Sindh government has reinforced the Price Control Act which empowers it to confiscate the stocks hoarded by mills beyond their statutory limits and sell it in the open market through official channels, dealers said.

Another step taken by government was to import the commodity from India on emergency basis. According to reports a maiden consignment of about 20,000 tons had already reached Pakistan via overland route in Lahore. Other consignments were expected to follow in the coming week.

Dealers said that the landed cost of $440 per ton was still on the higher side which came to Rs32 to 34 per kilo after adding the profit of importer and the overhead costs.

They said that the consumers will continue to pay higher price for the commodity till the time local mills decide to part with their unsold stocks in bulk to pass on the relief to general consumers.

Some officials think that the consumers could get the commodity at around Rs26 to 27 per kilo at retail level provided the millers cooperate with the government to bring the price down.

However, it was satisfying to note that the current price flare-up in sugar did not have sympathetic impact on other essential items which generally remained stable under the lead of rice.

Wheat was an exception which after remaining static around previous levels for last couple of weeks showed a modest rise owing to the pressure on supplies followed by reports of holding back of stocks by some commercial dealers.

On export front, physical shipments of rice were maintained on the higher side but owing to a bumper crop of well over five million tons, prices remained stable around their previous levels amid active local buying by the wholesalers.

Industrial raw materials on the other hand remained expensive under the lead of guarseed as supplies from the upcountry markets were far below the ready demand. Some leading stockists of the commodity, both in Sindh and Punjab were said to be holding on to their stocks, brokers said.

Physical activity remained relatively slow owing to a protest strike but the prices of some essential items fell fractionally amid a considerable decline in the ready demand in the absence of commercial dealers.

Among essential items, wheat after early rise posted a modest fall of Rs5 as the mill demand remained slow and arrivals from the stockists were on the higher side.

Rice sector also remained under pressure followed on the reports of steady arrivals from the Sindh markets and relatively slow physical shipments to foreign destinations. A loader was in the port loading the commodity.

While fine types including sela and kernal basmati were traded at the last levels, IRRI varieties suffered modest fall ranging from Rs5 to 10 owing to oversupply and falling local demand. IIRi-6 was an exception which rose by Rs20.

Pulses, on the other hand lacked normal trading interest followed by reports of comfortable ready position and steady imports. Prices of moong, masoor and masoor dal, gram whole, dal and urad were quoted unchanged at previous levels.

Despite a modest decline followed by some official corrective steps, sugar prices remained on the higher side and were quoted around Rs34 to 35 per kilo. The prices were expected to decline after the government officials force the hoarders to release their stocks in the open market.

Cereals sector remained under pressure partly to larger arrivals from the upcountry markets and partly to the slackened demand. These fell by Rs25 to 50 per bag for maize and bajra, while barley was held unchanged and so did the other types.

Among the industrial raw materials, guarseed posted a fresh gain of Rs75 due to a pressure on the supplies followed by the reports of a short crop in Sindh. Others were held unchanged.

Oilseed sector remained dormant as supplies matched the demand of local crushers. As a result, prices of cottonseed, rapeseed and castorseed were firmly held at the last levels. Til followed them but the export demand did not pick up.

Oilcakes on the other hand showed divergent trend. Rapeseed cakes fell by Rs15 on selling followed by the reports of weak oil market, while cottonseed cakes rose by Rs35 on strong speculative support triggered by the reports of short supply.—M.A.