SQL server query problem with update

ItemID	Description	PriceLevel_ID	PKEY
100	Red Chilli 1KG	1	         32434
100	Red Chili 1KG	5	         52434
100	Red Chili 1KG	6	         62437
100	Red Chili 1KG	8	         82435
100	Red Chili 1KG	9	         93434
200	Green Chilli 2KG	1	         32235
300	Yellow Chilli 3KG	1	         24345
300	Yellow Chilli 3KG	2	         53453
400	Purple Chilli 3KG	1	         34534

ItemID	Description	PriceLevel_ID	PKEY
100	Red Chilli 1KG	1	         32434
100	Red Chili 1KG	2	         52434
100	Red Chili 1KG	3	         62437
100	Red Chili 1KG	4	         82435
100	Red Chili 1KG	5	         93434
200	Green Chilli 2KG	1	         32235
300	Yellow Chilli 3KG	1	         24345
300	Yellow Chilli 3KG	2	         53453
400	Purple Chilli 3KG	1 	         34534

SET ANSI_NULLS ON
GO
SET QUOTED_IDENTIFIER ON
GO
-- =============================================
-- Author:	Mike Meinz
-- Create date: 12 March 2013
-- Description:	Fixup PriceLevel_ID to ensure ascending sequential integers 
--                within each ItemID
-- =============================================
CREATE PROCEDURE [dbo].[Fixup_PriceID] 
AS
BEGIN
-- SET NOCOUNT ON added to prevent extra result sets from interfering with SELECT statements.
SET NOCOUNT ON;
DECLARE @TEMPTABLE TABLE(
    PKey int,
	PriceLevel_ID int);
DECLARE TEMPTABLE_Cursor CURSOR LOCAL FAST_FORWARD FOR
	SELECT PKey,PriceLevel_ID from @TEMPTABLE order by PKey;
DECLARE @tmpPKey int;
DECLARE @tmpPriceLevel_ID int;		
DECLARE @currItemID int,@currPkey int,@currPriceLevel_ID int;
DECLARE @lastItemID int,@lastPkey int,@lastPriceLevel_ID int;
Declare Price_Table_Cursor CURSOR LOCAL FAST_FORWARD FOR
	SELECT ItemId,Pkey,PriceLevel_ID from PRICE_TABLE order by ItemID,Pkey;
DECLARE @FIRST_TIME BIT;
DECLARE @idx int;
DECLARE @boolSEQUENCE_ERROR BIT;
BEGIN TRANSACTION FIXUPPRICELEVELID;
SET @FIRST_TIME = 1;
OPEN Price_Table_Cursor;
-- Get first row
FETCH NEXT FROM Price_Table_Cursor INTO @currItemID,@currPkey,@currPriceLevel_ID;
WHILE @@FETCH_STATUS = 0
	BEGIN
	IF @FIRST_TIME = 1
	    BEGIN
		SET @FIRST_TIME=0
		SET @LastItemID=@currItemID
		SET @LastPKEY=@currPKEY
		SET @LastPriceLevel_ID=@currPriceLevel_ID
		SET @idx=0
		SET @boolSEQUENCE_ERROR=0
	    END
	
	IF @currItemID = @lastITemID
		-- Same ItemID as last time, insert the values into TEMPTABLE for later processing
		BEGIN
		SET @idx = @idx + 1
		INSERT INTO @TEMPTABLE (PKey,PriceLevel_ID) Values(@currPkey,@currPriceLevel_ID);
		-- Check to see if PriceLevel_ID is expected value
		IF @idx <> @currPriceLevel_ID SET @boolSEQUENCE_ERROR=1
		END
	ELSE
		-- New ItemID was found so start processing @lastItemID's rows
		BEGIN
		IF @boolSEQUENCE_ERROR = 1 
			-- Found at least one for the @lastItemID that was out of sequence
			BEGIN
			-- Rows for @lastItemID were out of sequence
			-- Check which rows are out of sequence and fix them
			SET @idx=1
			Open TEMPTABLE_Cursor;
			FETCH NEXT FROM TEMPTABLE_Cursor INTO @tmpPKey,@tmpPriceLevel_ID;
			WHILE @@FETCH_STATUS = 0
				BEGIN
				-- Check if PriceLevel_ID is expected value
				IF @idx <> @tmpPriceLevel_ID 
					-- If not expected value, Update PRICE_TABLE 
					BEGIN
					UPDATE PRICE_TABLE SET PriceLevel_ID=@idx WHERE ItemID=@lastItemID AND PKEY=@tmpPKey;
					END
				SET @idx=@idx + 1 -- Compute next expected PriceLevel_ID
				FETCH NEXT FROM TEMPTABLE_Cursor INTO @tmpPKey,@tmpPriceLevel_ID;
				END
			Close TEMPTABLE_Cursor;
			END
		DELETE FROM @TEMPTABLE;
		--
		-- Put @currItemID's information into TEMPTABLE
		-- 
		SET @boolSEQUENCE_ERROR=0
		SET @LastItemID=@currItemID
		SET @LastPKEY=@currPKEY
		SET @LastPriceLevel_ID=@currPriceLevel_ID
		SET @idx=1
		INSERT INTO @TEMPTABLE (PKey,PriceLevel_ID) Values (@currPkey,@currPriceLevel_ID);
		-- Check to see if PriceLevel_ID is expected value
		IF @idx <> @currPriceLevel_ID SET @boolSEQUENCE_ERROR=1
		END
		FETCH NEXT FROM Price_Table_Cursor INTO @currItemID,@currPkey,@currPriceLevel_ID;
	END -- WHILE loop
--
-- Process @lastItemID's rows
--
IF @boolSEQUENCE_ERROR = 1 
	-- Found at least one for the @lastItemID that was out of sequence
	BEGIN
	-- Rows for @lastItemID were out of sequence
	-- Check which rows are out of sequence and fix them
	SET @idx=1
	Open TEMPTABLE_Cursor;
	FETCH NEXT FROM TEMPTABLE_Cursor INTO @tmpPKey,@tmpPriceLevel_ID;
	WHILE @@FETCH_STATUS = 0
		BEGIN
		-- Check if PriceLevel_ID is expected value
		IF @idx <> @tmpPriceLevel_ID 
			-- If not expected value, Update PRICE_TABLE
			BEGIN
			UPDATE PRICE_TABLE SET PriceLevel_ID=@idx WHERE ItemID=@lastItemID AND PKEY=@lastPkey;
			END
		SET @idx=@idx + 1 -- Compute next expected PriceLevel_ID
		FETCH NEXT FROM TEMPTABLE_Cursor INTO @tmpPKey,@tmpPriceLevel_ID;
		END
	Close TEMPTABLE_Cursor;
	END
DELETE FROM @TEMPTABLE;
Close Price_Table_Cursor;
Deallocate TEMPTABLE_Cursor;
Deallocate Price_Table_Cursor;
COMMIT TRANSACTION;
END

Exec Fixup_PriceID