Much of the price increase was noted at the retailers’ end in the absence of effective administrative machinery. The shopkeepers charged prices according to their whims, market sources said.
Arrivals of most of the commodities over the week were on the lower side as cargo haulers raised fares after the current hike (10 to 20 per cent) in petroleum products. Dealers in the interior were reluctant to pay higher freights and awaited details from other sources, which in turn held back fresh supplies. These dealers were also in process of calculations of the net impact of fuel hike on the selling prices at the wholesalers’ end. Arrivals from upcountry markets are expected to normalise by next week after the necessary calculations.
Wheat again led the market advance despite official moves to lower its prices after releasing larger stocks, market sources said. The current moves were aimed at stabilising flour prices at an affordable level, they said. But some others feared that as the commodity was in commercial trading and some leading brokerage houses and commercial traders held bulk of it, there were no chances of any fall in its price.
However, the best thing from consumers point of view will be to contain it around the current levels after releasing more stock on the open market through official channels, they said. By checking smuggling of the commodity its supplies could also be increased.
Barring stray changes in some varieties of pulses, price changes were either-way. However, buying support both from retailers and wholesalers remained on the lower side.
Unlike previous weeks, price changes were on both sides of the fence as some of the essential items rose further, while others fell on selling by local stockists.
Prices of all varieties of rice including IRRI and basmati were firmly held unchanged at the last levels as demand remained on the lower side. But at the retailers’ end prices did rise.
Wheat again led the market advance and was quoted higher by Rs50 per maund owing to pressure on ready supplies and rising mill demand. Floor brokers said prices could ease by next week as the government has ordered stock holders to declare their stocks.
Sugar followed it on reports of higher export of 0.4m tones to different countries to ease the stock position of mills. But the increase was modest at Rs25. Desi sugar and gur were held unchanged at previous levels.
Pulses sector, on the other hand, showed mixed trend on ready supply position. While gram garda and peas posted gains ranging from Rs50 to Rs150 per bag of 100 kg, moong, gram dal and beetle were quoted lower by Rs50 to Rs200. The largest fall of Rs300 was recorded in gram dal as supply positive showed considerable improvement.
Among industrial raw material guar seeds came in for active support from mills and were quoted higher by Rs200 per bag. Arrivals from upcountry markets were also lower, which caused price flare-up, dealers said.
Cereals sector, on the other hand, did not show much change as supplies matched the local demand. Prices of maize, bajra, jowar, and barley were firmly held at the last levels.
But, on the other hand, major oilseeds remained under pressure and fell by Rs50 to Rs100 per maund for both cotton and cottonseeds respectively.
Other seeds, including rape seed, castor seed and til did not show much changes as ready position was fairly comfortable in the absence of fresh foreign orders. Local demand by crushers was modest and did not change the previous price pattern.
On the oilcake sector, rapeseed cakes were firmly held at the last close, while cottonseed cakes were marked down by Rs25 to Rs30 per maund on selling triggered by reports of steady new crop arrivals.—M.A.