The prices of rice have increased by 11-22 percent over the past few days. Investors and businessmen said the production of rice in India has decreased by 30 percent, sending the prices up over $1,250 a ton for some types of rice and over $1,300 a ton for other types like white rice. Saudi import companies have recently seen a decrease in rice stocks.

Indian companies, on the other hand, have adopted a new technology that allows importers to save rice for 60 days maximum. Before this technology was introduced, companies were able to save rice for six months in warehouses. As a result, the price of a ton of rice increased by $50.

Fathi Al-Sihati, an investor, attributed the rise in prices to local and overseas factors.

“Indian companies are adamant about rice prices and do not want to decrease them. Besides, more Indian companies have their eyes set on the Iraq market and many of them have signed deals with Iraqi companies. The decreasing stocks of rice have also played a role in the increase of prices,” he said.

Ali Al-Zaher, an investor, said many local companies have increased the prices of rice, regardless of its type — brown, white, etc. For example “Taj Alhind” rice has reached SR236 for 40-kg, up from SR212; “Bab Alhind” has reached SR299, up from SR260; “Abu Ghadran” has reached SR178, up from SR145.

SOURCE : SAUDIGAZETTE