The price of rice continues to reach record levels. The demand for the commodity during the last days of Ramadan and Eid holidays increased tremendously, forcing the price up by 35 percent. Rice importers anticipate sales worth SR200 million, while recent figures show consumption during the last fortnight climbing to 75,000 tons, representing 25 million 3-kg bags of rice Al-Madina Arabic daily reports. The price rise, introduced by suppliers at the beginning of Ramadan, has caught many consumers by surprise, and they question whether the justification that it is part of a global trend is warranted. Others note that some supermarkets and hypermarkets are displaying new, cheaper brands of inferior quality rice at discount prices. Some trace the price hike to rice cartels in India, increased demand on Iranian, European and US markets for the Indian Basmati rice, and the higher dollar exchange rate against the Indian rupee. Yusuf Nour Wali, a rice importer, said that the Ministry of Finance, has been late in paying rice subsidies and that new conditions to qualify for subsidization are being put in place. The Central Supply Department at the Ministry of Commerce and Industry attributed the price rise to external factors and said a report would be published in the near future with set prices stipulated for all commodities. Rice is a staple food in the Kingdom of Saudi Arabia and in the Gulf area as a whole. Annual imports of this commodity are estimated at one million tons, 410,000 tons of which are imported from India, or the equivalent of 58.5 percent, 115,000 tons from the US, 90,000 tons from Pakistan and 30,000 tons from Thailand. The remaining quantity is obtained from other sources, including Vietnam and Iran. __
