Tuesday, Jul 08, 2008
Dubai: The current stock of Indian non-basmati rice in the UAE will not last beyond 10 days, according to senior food traders in the region, adding fuel to rumours of a black market in the country.
"The feedback from the market says that the stock [of Indian non-basmati rice] will not go longer than a week or 10 days," Nandu Kumar, spokesperson for Emke Group, which operates Lulu Hypermarkets - the largest retail chain in the Gulf.
India banned exports of non-basmati rice to the UAE in March because of rising inflation, causing a wave of panic buying and trebling the benchmark Thai prices in the process.
The Supreme Court of India recently ruled in favour of the ban, due to rocketing inflation levels globally.
"The Indian government thinks the stock should be used for feeding Indians in India," said one food trader.
Some local food traders say there is plenty of rice available in the UAE, quashing rumours of a black market and rice shortages.
"There's no such thing as a black market. It's that the government isn't willing to come forward and remove the ban. They have got used to the fact that it's not Dubai traders, it's a worldwide phenomenon," said a representative of Dubai's Foodstuff Trading Group, requesting anonymity.
No shortage
Last year, the UAE imported about 750,000 tonnes of rice, mainly from India, Pakistan, Thailand and Egypt.
"Rice continues to come in otherwise shortages would have come in. There are no shortages," he said.
"The problem is, rice is available but there is not enough money in people's pockets so the quality is lower than a year and a half back."
The Ministry of Economy recently signed a series of memorandums of understanding with leading supermarkets in an effort to secure prices on select products at 2007 levels.
An Abu Dhabi-based food trader said that prices paid to black market dealers could be "as much as 20 per cent more than what you pay normally".
"It's not just a shortage of rice...we also have a black market for rice where some dealers will sell you any type of rice you want," the trader said in a Reuters report.
The UAE has plans to secure more Thai rice imports later this year to meet domestic demand and is also planning to possibly buy farmland in countries like India and Sudan.
Many rice importers are demanding at least a 25 per cent subsidy, and the Emirates Society for Consumer Protection has urged the government to subsidise basic food items to curb food prices which are expected to hit 40 per cent this year.
The Minister of Economy, Sultan Bin Saeed Al Mansouri, is due to tour the Union Cooperative and Carrefour tomorrow to check the deals are being kept in place.
By Suzanne FentonGulf News 2008. All rights reserved.
