Rice prices jumped 20 percent jump in the last six months on the Saudi market, but importers say that sufficient quantities remain available.
The current stock is estimated to be about 350,000 tons — about 25 percent of the Kingdom total annual imports of 1.4 million tons — coming mostly from India.
The chairman of the Board of Directors of Al-Shaalan Rice Company, Mohammed Al-Shaalan, attributed the reasons for the high rice prices in the Kingdom to price hikes in the exporting countries, in addition to the increasing demand for rice, especially the Indian rice (Basmati) from various global markets.
Al-Shaalan said the Saudi market has enough stock in various companies, and in excess of 25 percent of the total annual imports. He said this should assure everyone that there is enough quantities to meet the local growing demand for rice..
“According to the information available, there is a good harvest in the source countries for the current year, and we will reap the benefits of this harvest beginning of the month of October,” he said. “However, we cannot predict what might happen during the next phase of rain or floods, which may affect the size of the crop in general.”
Al-Shaalan added that, “Investing in rice farms in India is impossible because of the control of a lot of families and farm owners. A lot of rice plants in India also buy the products of small farmers.”
The entry of new countries to buy rice in large quantities with the tight supply in producing countries contributed to the rise in prices, he added.
The CEO of Al-Othaim Markets Company, Yousef Bin Mohammed Al-Kaffary, agreed that there is plenty of rice in the market.
For the new season, which starts during the month of October, the projections indicate an increase in production compared to last year.
Al-Kaffary also indicated that rice prices have been rising over the past months due to lack of crop availability and increase in demand. However, the expected bumper of new crops will contribute to lower prices.
The owner of chain food supermarket, Mohammad Al-Bashiry, said that the market has a sufficient stock of rice, and did not note a shortage of any kind. He reassured that such availability of rice in sufficient quantities will meet domestic demand in the Kingdom despite of the huge demand for it from different segments of society.
The price of rice experienced an all-time high during the past months, with increases exceeding 20 percent, especially before the Holy month of Ramadan.
Prices are expected to continue to rise, especially “Basmati” rice with its various types, which rose more than SR13 per bag, from SR25.50 to SR 8.50 for a 5-kg bag.
The price of a 10-kg bag increased by about SR18, up to SR70, while the price of a 40-kg increased about SR20.
Exporting countries to blame for rice price hike
