Prices Of Indian Rice In UAE May Increase By 20% And Here’s Why

by Vaishalee Kalvankar
Prices Of Indian Rice In UAE May Increase By 20% And Here’s Why

The price of Indian rice might be increased by 20% in the UAE as India has decided to levy export duty from September 9. There are four categories of rice that get exported to the UAE from India. So out of these four, export duty has been imposed on white and broken non-basmati rice by New Delhi. It is expected that India might record lower rice production owing to less rain in the key states. 

Indian Rice Will Be Costlier In UAE

About 60 per cent of the people in UAE consume the two varieties: white and broken non-basmati rice. The retailers and importers said that a 20% hike on the duty will obviously result in a similar percent of hike in the prices in UAE. The two varieties act as staple food for many nationalities in the UAE, said the Chairman and Managing Director of Al Adil trading, Dr. Dhanajay Datar. This is because these varieties are consumed by many nationalities like Filipinos, Pakistanis, Indians, etc. 

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Crop Production Of Rice Is Low

Dr Datar further said that as the crop production has been low in India, the Government had to take this step. White rice is the staple food for many people residing in South east and South of Asia. It is also the most consumed one. South Indians need the rice to prepare idlis and dosas too. UAE and Gulf Cooperation Council (GCC) look at India as the major source of rice for  them. In the last year India exported about more than 75 percent of its available 21 million tonnes of rice to Iran, UAE and others. India exports about 40 percent of the total rice exports in the world. However a trader said that they can source the same from Pakistan or Vietnam as well. But since Pakistan is devastated because of the floods, Vietnam would be a better choice. 

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First Published: September 14, 2022 3:15 PM