27 February 2014
JEDDAH - The USDA Post in Saudi Arabia says that rice demand in Saudi Arabia is increasing and imports are expected to reach around 1.3 million tons in the calendar year 2014, up about 3 percent from an estimated 1.26 million tons in 2013.
Rice is a staple food in Saudi Arabia and the rice per capita consumption is estimated at 42 kilograms per year, but the country depends entirely on imports to meet local consumption needs. The Post said that while rice consumption is slightly declining among the richer people in Saudi Arabia, overall rice demand is expected to grow by around 3 percent annually, driven by population growth and increasing number of pilgrims for Haj (estimated at around 8 million annually). Basmati rice from the Indian sub-continent is the most popular rice variety in Saudi Arabia.
The Post also says that while India is the largest supplier of rice to Saudi Arabia, but its share of the Saudi rice market slightly declined last year. According to the Post, India exported about 875,000 tons of rice in 2013, up about 2 percent from around 861,210 tons exported in the previous year. However, India's market share declined to around 69.2 percent in 2013, compared to 70.3 percent in 2012. Meanwhile, rice imports from the US are increasing. The US exported about 136,350 tons of rice to Saudi Arabia, up about 19 percent from around 114,873 tons in 2012. The US share of the Saudi rice market increased to around 10.8 percent in 2013, up from around 9.4 percent in 2012.
The Post noted that while Indian rice prices have increased in recent months due to tighter supply in India, US rice prices remained stable. According to the Post, Indian rice prices increased by around 20 percent this month (compared to an average price of $1,100 per ton FOB in 2013), and higher prices could help increase US market share in the Saudi rice market this year. Pakistan rice exporters say that higher Indian rice prices will also help Pakistan increase its share in the Saudi rice market this year.
JEDDAH - The USDA Post in Saudi Arabia says that rice demand in Saudi Arabia is increasing and imports are expected to reach around 1.3 million tons in the calendar year 2014, up about 3 percent from an estimated 1.26 million tons in 2013.
Rice is a staple food in Saudi Arabia and the rice per capita consumption is estimated at 42 kilograms per year, but the country depends entirely on imports to meet local consumption needs. The Post said that while rice consumption is slightly declining among the richer people in Saudi Arabia, overall rice demand is expected to grow by around 3 percent annually, driven by population growth and increasing number of pilgrims for Haj (estimated at around 8 million annually). Basmati rice from the Indian sub-continent is the most popular rice variety in Saudi Arabia.
The Post also says that while India is the largest supplier of rice to Saudi Arabia, but its share of the Saudi rice market slightly declined last year. According to the Post, India exported about 875,000 tons of rice in 2013, up about 2 percent from around 861,210 tons exported in the previous year. However, India's market share declined to around 69.2 percent in 2013, compared to 70.3 percent in 2012. Meanwhile, rice imports from the US are increasing. The US exported about 136,350 tons of rice to Saudi Arabia, up about 19 percent from around 114,873 tons in 2012. The US share of the Saudi rice market increased to around 10.8 percent in 2013, up from around 9.4 percent in 2012.
The Post noted that while Indian rice prices have increased in recent months due to tighter supply in India, US rice prices remained stable. According to the Post, Indian rice prices increased by around 20 percent this month (compared to an average price of $1,100 per ton FOB in 2013), and higher prices could help increase US market share in the Saudi rice market this year. Pakistan rice exporters say that higher Indian rice prices will also help Pakistan increase its share in the Saudi rice market this year.
© The Saudi Gazette 2014
