UAE non-basmati rice prices set to drop 20% as India lifts export ban
Non-basmati rice prices in the UAE are expected to decrease by about 20% following India’s removal of the export ban on the commodity. India, the largest supplier of rice to the UAE, lifted the ban on September 28, 2024, allowing exports with a set floor price of $490 per tonne. This move, due to a bumper crop, is anticipated to significantly lower prices for popular varieties like Sona Masuri and Jeerakashala rice, which constitute about 70% of the UAE’s rice market.
Non-basmati rice prices are expected to drop around 20 per cent in the UAE after India removed the export ban on the commodity.
India is the largest source of rice imports for the UAE, with millions of tonnes of both basmati and non-basmati rice every year.
On Saturday, India removed a blanket ban on non-basmati white rice exports, setting a floor price of $490 (nearly Dh1,800) per tonne and removed export duty as well due to bumper crop in the South Asian country. The notice issued by India’s Ministry of Commerce and Industry on September 28, 2024, said the decision is effective immediately.
“This change is expected to cause a significant drop — approximately 20 per cent — in prices in the UAE market very soon,” said Dr Dhananjay Datar, chairman of Al Adil Supermarkets.
“In the UAE, non-basmati rice is among the fastest-selling items, accounting for roughly 70 per cent of the market share. Popular varieties such as white rice, Sona Masuri rice, Jeerakashala rice, and parboiled rice are in high demand. Given that India is the largest exporter of non-basmati rice to the UAE and that the UAE serves as a major re-export hub worldwide, this development opens up exciting opportunities for traders,” said Dr Datar, also popularly known as Masala King.
In addition to India, Thailand and Pakistan are the other major rice exporters to the UAE, which is the world’s largest re-exporter of rice.
The Indian government data showed that rice exports dropped nearly 25 per cent in the first four months of this fiscal year starting April 1. The bumper crop this year has prompted the Indian government to allow exports of the commodity, which will help keep the price stable in the local market and also earn foreign exchange for the country.
Source Link : https://www.khaleejtimes.com/business/uae-non-basmati-rice-prices-set-to-drop-20-as-india-lifts-export-ban
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