THE KARACHI wholesale commodity markets finished the post-budget week on a mixed note as some of the essential items came in for active selling for no apparent bearish reason.
Prices of some of essential items suffered decline as the new budget allowed many exemptions — barring few exceptions — which came under the net of sales tax. Pulses, for instance, were exempted from any duty. Its prices rose early but when the news of tax exemption came in, commercial houses sold in a panic with the consequent sharp decline in some types.
The market decline was led by pulses and wheat, apparently in the absence of strong demand from the retailers as they were busy analysing the fiscal measures and its likely impact on the prevailing prices.
Ready demand also remained at a low ebb in the absence of strong demand from both the leading brokerage and commercial houses, who most of the time stayed on the sidelines allowing the market to settle down in the post-budget trading scenario.
However, steep decline in pulses was not backed by any negative news, except falling demand from the upcountry buyers and near-panic selling by those who held large unsold stocks, dealers said.
Wheat also remained under pressure followed by negative reports from the export front and fell by Rs20 per bag on local selling.
Rice sector maintained its upward drive followed by the reports of active export demand. Prices of all types including IRRI-6 posted gains ranging from Rs25 followed by basmati including sela type, which rose by Rs25 to 50.
But the largest rise of Rs175 per bag was noted in kernal variety of basmati, partly because of pressure on the ready supplies and partly to strong demand from the Gulf importers. IRRI-9 from Sindh was the only exception, which fell by Rs25 on selling.
They said the new rice crop is far away and will arrive on the market sometime in September as growers are in the process of sowing it. Short ready position caused the price flare-up.
Sugar followed it after early weakness caused by the large unsold stock of about 1.5 million tons lying in mills’ godowns. The other negative factor was the slow ready offtake from the wholesalers and the retailers. But late buying by the upcountry traders pushed its prices sharply higher after the continued weakness for last couple of weeks. There were reports in the market weeks back that the government has allowed export of 0.150 million tons of the commodity to Afghanistan, but now both the millers and the government is silent on the issue.
Meanwhile, according to the Karachi port sources a ship loaded with a large quantity of the commodity is being unloaded at wharves.
Market sources said this consignment may find its way into Afghanistan through the overland route. It may be a donation under the UN food programme for Afghanistan from some European countries.
Pulses came in for active selling at the fag-end of the week and fell by Rs20 to 55 per bag for peas, gram whole and gram dal, beetle and masoor, which were marked down by Rs25 to 100. Moong and urad were exceptions, which ended higher by Rs12.50 and Rs125 per bag, while masoor dal was held unchanged at the last levels.
Sugar on the other hand remained under pressure owing to lack of demand and larger unsold stock, falling by Rs20 per bag. Gur on the other hand rose by Rs50.
Among the cereals, bajra posted a fresh rise of Rs25, while jowar was marked down by Rs5 to 10 in the absence of local demand. Maize and guar followed them as both lacked normal demand from the local traders.
Oilseed sector showed firm trend as prices remained pegged at the last close, amid slow trading. Rapeseed consolidated the last week’s gains, while castorseed rose by Rs25, with til remaining unchanged from the previous close.
Oilcakes showed easy trend on late selling and were marked down by Rs2 to 10 for both cottonseed and rapeseed cakes, respectively.—M.A