950811

Commodity prices

move both ways,

but trading

below normal

RECORDER REVIEW

KARACHI: Commodity markets moved both ways while trading activity was below normal during the week under review. Changes in certain sectors were frequent and across the board. Tea and plastic mouldings were such sectors. Substantial rise was marked in powdered milk. Moong local and imported also rose, so did the prices of sugar. Tea, plastic mouldings, sela basmati, gram sanyasi and gram beetle turned weaker.

Tea maintained declining trend and genuine traders had to face competition with the 'importers' without payment of import duty. In the absence of Afghan transit trade facility, tea imports are being routed through other neighbouring countries. Traders' plea to realise duty at packaging level appears to have fallen on deaf ears. Tea as such was generally weaker last week: PF-1 A grade conceded Rs 11, B grade Ra 7, C grade Rs 8, BP-1 A grade shed Rs 2, B grade rose by Rs 10, C grade up Rs 7, plus C grade up by Rs 10, Dust A and plus C grade up Rs 5, Bangladesh Garden Pack (original) conceded Rs 11, Khushbu climbed down by Rs 11, STD/515 gained Rs 7 but lost Re one later, China's Green 9575 conceded Rs 7, China black quoted at Rs 60, Indonesian PF-1 Good A higher by Rs 11, Good B up Rs 2, BP-1 (CTC) quoted at Rs 100/101 and PD quoted at Rs 62 to 77.

Plastic mouldings have been passing through difficult phase and are failing to keep money in circulation. The government decision to reduce Custom duty to gust 30 percent - meant as concession to industries - came as a further shock to commercial traders. The commercial traders have suggested to the government to take such measures that could facilitate the industries but do not hurt the traders. As opposed to this, the industries want to bypass traders by directly importing the 9,000 tons quantity, hitherto being the domain of traders. They suggest that traders should switch over to the trading of finished sacks rather than stick to dealing in raw material. So, plastic mouldings continued lower trend: HDPE film Tipelin was 75 paisa lower. Mobil shed the same amount. Korea conceded 75 paisa. HDPE injection grade Ladene, Thai, Dilene and Escorene declined 50 paisa, HDPE blow Tipelin, Dilene and Russian gave in Rs 1.25, LLDPE injection Ladene conceded 50 paisa, Thai depreciated by Re 1, Mobil and Escorene climbed down by 50 paisa, polypropylene film grade Tipelin and Amoco lower by 75 paisa, polypropylene Tape grade Yuplene, Hungary and Saudia retreated by 50 paisa, polyproplene high impact Basf, Krasten, Lucky shed Rs 2, PVC Golden Bell shed Re one, formation gave in Rs 1.50, Hungary (angrovil) backed away by Rs 2, Saudia and Russia lost Re one, plystyrene GP per bag solarine climbed down by Rs 120, Saudia retreated by the same amount, Pakistani gave in Rs 125, Lucky lost Rs 120.

POWDERED-MILK as ever kept undergoing heavy fluctuations. Since Ramazan last year its prices have ever been soaring. The traders urged the government to abolish import duty and Sales Tax to relent the rigours which the poor and sick consumers were suffering due to abnormal rises in its prices abroad. The government recently dropped 15 pc Sales Tax but, according to consumers, the relief was not passed on to them. They allege that fresh and liquid milk producers are after it and disturbing the balance. Thus, Haleeb was higher by Rs 110, Nurpur gained Rs 200, Corolac climbed up by Rs 50, Millac per tin up Rs 25, and Millac 2.5 kilo appreciated by Rs 30, Luthonia quoted at Rs 2728, Poland up Rs 25, full cream instant Mix Me turned lower by Rs 100.

JUTE GOODS have been declining because of the higher production reports worldwide. The products are having tough competition with the polythene and other symthetic prouducts: Twine 16x3 Mehran brown CRT/Indus and PJSL retreated by Re one, 40x2 Mehran brown dipped by Rs 2 and hessian 50x9 Mehran up Rs 50.

KIRANA depicted mixed trend in somewhat normal trading activity. There were usual complaints about smuggling of certain items which, traders said, hurts the exchequer: White pepper turned higher by Rs 100. White pepper Singapore, however, lost Rs 50. Small cardamom from Guatemala shed Rs 800; small cardamom Tanzania shed Ts 600, cloves up Rs 25, copra Ceylon up Rs 590, copra Ceycelles quoted at Rs 1900, saunf quoted at Rs 200, copra medium up Rs 50, small copra up Rs 75, Coconut oil up Rs 80, dry ginger up Rs 50, almond katha up Rs 20, raisin up Rs 100, pistachio conceded Rs 250, Isbaghol Ki Bhoosi depreciated by Rs 300, and chilghoza higher by Rs 50.

SEED AND GRAIN markets saw some changes on the higher side, more suprprising, white sugar despite half-hearted measures by the government to arrest the soaring sugar prices. Actually when the news came about sugar being surplus, pressure on the government mounted to allow exports and, along with it, prices also rose. The government allowed export and the prices achieved record rise. The government did not ban export but withdrew 10 pc import duty. Latest step by the government is to recover loans from the sugar producers. But the rates still rose last week by Rs 50 to 60. Gur in sumpathy was up Rs 100 and 'Khandsan' up Rs 150.

Moong was another counter where prices went up, except that there was a slight fall towards the close:

Moong Sindh gained Rs 25, but Punjab lost the same amount, after gains of Rs 50.

N T SANGIN shed Rs 5, Sanyasi shed Rs 100, gram beetle lost Rs 75, dal yellow peas up Rs 25, better variety sela basmati shed Rs 50, guwar up Rs 6, imported moong up Rs 25, cotton cakes lost Rs 10 to 12, till Sindh conceded Rs 50, castorseed depressed by Rs 5, bajra down by Rs 5 to Rs 15, gram garda up Rs 50 but Punjab gram gave in Rs 25.