Price of imported rice including the Indian Basmati has shot up 20 per cent in Saudi Arabia due to shortage of supply from India, according to a media report.
Popular varieties of Basmati rice remain hard to find at retail outlets in the country despite the price hike, the Arab News report said.
The price has gone up 20 per cent within a month and they are likely to rise further as India is facing its own high demand, it said.
Mohammed Al-Shalan, a leading rice importer in Saudi Arabia and a member of the Food Security Committee at the Riyadh Chamber of Commerce, blamed price hikes on cost factors and supply and demand dynamics in India.
Another trader told the newspaper that the situation is so dire that the price of Thai rice, which is usually lower than the price of Indian rice, is now in the same range. Some traders have taken advantage of the situation by selling substandard rice.
Many are duping customers into believing they are purchasing genuine Sona Masuri rice, popular in Andhra Pradesh, according to the report.
Rice is a major staple food in Saudi Arabia, with an annual per capita consumption of approximately 42 kg.
The Gulf nation relies on rice imports from abroad to meet its demand and there are about 17 large rice importers out of total 180 in the country.
Over 80 per cent of Saudi rice imports constitute the Basmati variety from India.
Leading Saudi rice importers also have a significant presence in India.
