To import Jasmine from Thailand, Gulf to set up firm to monitor food trade
Bahrain has stepped up efforts to ensure the supply of essential food items including rice at competitive prices and in enough quantity.
The Kingdom is also keen to promote Jasmine rice produced by Thailand to offer a quality alternative to Basmati rice lovers. The GCC will establish a joint entity to tackle the import, supply and price-related issues, a senior government official has revealed.
Dr Hassan Abdulla Fakhro, the Minister of Industry and Commerce, in a briefing at the ministry complex in Seef said that the GCC ministers of trade and commerce who met in Doha have agreed in principle to establish an entity to deal with the import, storage of food items and price-related issues.
"The GCC countries will establish a company to monitor the flow of imports, quantity of food in terms of storage and price index. The move will help to ease the current ongoing inflationary pressures in the region as well as un-interrupted supply of rice and other essential items on a daily basis.
Dr Fakhro said that the technical committee would finalise the modalities for the proposed body, which according to him, would be proved a right step in the right direction.
The minister said that the model developed by a national committee for price control in Bahrain has been formally accepted by the GCC Ministers at Doha meeting.
"Bahrain is a pioneer in developing a real model aimed at addressing the price and demand supply issues which directly affect the masses."
The minister who also held detailed talks during his visit to Thailand and Philippines to discuss the issues with both high level officials said that the visit to Thailand in particular was very result-oriented.
Dr Fakhro said that Bahrain had also inked a memorandum of understanding (MoU) with the leading Thai rice export company which would help to streamline the export of Jasmine rice to Bahrain in the near future. An agreement was also reached with officials in the Philippines to allocate large plots of land to grow basmati rice in a bid to secure the Kingdom's needs for such a product at reasonable prices.
Jasmine rice, the minister said, is equally good in quality and taste and considered as a right choice for consumers.
"When we do not have enough Basmati rice in the market, consumer virtually end-up paying more. This supply demand imbalance has to be corrected and we intend to promote the Jasmine rice in the local market."
Apart from the import of new quality of rice, the minister said, Bahrain is keen to see the plantation of superior quality of rice in Thailand.
"Thailand being the largest exporter of rice can help Bahrain and the GCC countries to address the rice supply issues without any difficulty. We want to learn from the Thai experience and a high-level team from Thailand will visit Bahrain to finalise the details of co-operation.
Earlier, StanChart in a report criticised the mechanism put in place by the GCC governments to ease the inflationary pressures.
The report warned: "The growing inflation and price control mechanism put in place by the regional governments will have serious consequences. Inflation in Saudi Arabia, Qatar, UAE and Oman is in double digits. Food price inflation in the UAE hit 27 per cent and 14.2 per cent in Saudi Arabia."
"The GCC can reduce the impact of food price inflation through currency reform. However with global food prices climbing, this will be a burden the region will have to bear."
Dr Fakhro said that Bahrain government would take all precautionary measures to mitigate the impact of spiraling prices.
By Mahmood Rafique
© Bahrain Tribune 2008
