Dubai: The price of rice is expected to increase over the next five years in the UAE as consumers are more likely to opt for premium brands, according to research by Euromonitor International.
“Although the price of rice has remained more or less stable over the last few years, the coming five years are expected to see a slight rise in the average price of rice in the UAE,” said Sana Toukan, head of research for the Middle East at Euromonitor International.
Prices are expected to rise 0.9 per cent in the next year, 1.1 per cent in 2014 to 2015, 0.9 per cent in 2015 to 2016 and 0.8 per cent by 2017, the research showed. Higher disposable income from expected economic growth and expected increase in the number of Western expats who are likely to purchase premium brands from their home countries is expected to push average prices higher, Toukan said.
Radikal, a new India-based entrant into the UAE basmati rice market, has recently joined forces with NMC Trading to distribute their product range here.
The company is spending $12 million (Dh44.1 million) in an “aggressive” marketing campaign as it hopes to enter 65 countries globally including the Middle East by the end of 2013, Siddharth Chaudhary, managing director of Radikal said.
About seven per cent of that budget will be spent on marketing in the UAE’s overcrowded basmati rice market, he said.
The Middle East accounts for 75 per cent of total Indian basmati rice exports, he noted.
