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Published: Sunday, September 29, 2024, 11:16am
Last updated: Sunday, September 29, 2024, 6:19 p.m.
Prices of non-basmati rice are expected to fall by about 20% in the UAE after India lifts its ban on exports of non-basmati rice.
India is the UAE’s largest source of rice imports, with millions of tonnes of basmati and non-basmati rice imported each year.
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India on Saturday lifted a blanket ban on exports of non-basmati white rice, setting a minimum price of $490 (about 1,800 dirhams) per tonne and removing export duties, citing a bumper crop in the South Asian country. According to a notification issued by India’s Ministry of Commerce and Industry on September 28, 2024, the decision will come into effect immediately.
Dr Dhananjay Datar, chairman of Al Adil Supermarkets, said: “With this change, we expect to see a significant (approximately 20%) decline in prices in the UAE market soon.”
Dr. Dhananjay Datar
“In the UAE, non-basmati rice is one of the fastest-selling items, accounting for around 70 percent of the market share. Popular varieties include white rice, Sona Masri rice, Jeera Kashara rice, and parboiled rice. is in high demand. This development is exciting for traders, given that India is the largest exporter of non-basmati rice to the UAE and the UAE acts as a major re-export hub for the world. It brings opportunities,” said Dr. Datar, also known as Masala King.
In addition to India, Thailand and Pakistan are other major rice exporters to the UAE, which is the world’s largest rice re-exporter.
Indian government data shows rice exports fell by nearly 25% in the first four months of this fiscal year starting April 1. Following this year’s bumper harvest, the Indian government has allowed the export of rice, which can be sold in local markets and earn foreign exchange for the country, which will help keep prices stable.
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