Indian export ban to keep UAE rice supplies tight

Dubai: The ban on non-basmati rice exports from India will continue to keep local prices firm and put a tight rein on stocks in the UAE, a rice retailer has warned.

Deepak Thawani, marketing manager for Tilda International, told Gulf News that some outlets are already limiting the sale of rice to consumers, indicating that the local rice supply is getting quite tight.

"Non-basmati rice from India is available in major outlets, but recently it has been noticed that these outlets are rationing quantities. For example, one bag per consumer.

"This step indicates that there are not enough stocks of non-basmati rice available and due to the continued ban, it is becoming more and more difficult to get non-basmati rice from India," Thawani said.

An expert earlier predicted that the Indian government may not lift the ban on the export of white rice before next April or May, as it is likely to wait and see how the winter wheat crop shapes up next year.

Following an increase in domestic food prices, India banned the export of white rice in March despite stable local supply.

Rising prices

Thawani said the ban, if not lifted soon, will not bring down the prices of Thai long grain and Jasmine varieties, and that "whatever stocks available of non-basmati rice in the UAE would become more dearer."

"Recently, Indian customs identified that few consignments of non-basmati rice were labelled as basmati and were being exported to UAE. They seized these consignments," Thawani said.

"Overall, it seems that ban on non-basmati rice will continue till next harvest season which is November and the customs authorities will take all the necessary steps to prevent export of non-basmati through unauthorised channels," he added.

Options

However, Kamal Vachani, director of the Al Maya Group, yesterday said India's continued rice ban will not affect the local price and supply situation because the UAE is not relying solely on India.

He added the UAE is getting rice stocks from Thailand, Sri Lanka and Bangladesh, as well.

"And it's not a new ban, it's just an extended ban. Besides, when we have new crops coming in by September or October, prices will ease," Vachani told Gulf News.

He said the UAE has enough rice supply and that prices are still stable.