Photo: Collected
The price of non-basmati rice in the UAE is expected to drop by around 20 percent after India lifted its export ban on non-basmati rice. India is the largest source of rice imports for the UAE, with millions of tonnes of basmati and non-basmati rice arriving every year.
On Saturday (September 28, 2024), 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 crops 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 percent — 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 percent 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 percent 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: Online/GFMM
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