The government of the kingdom of Saudi Arabia, one of the world's largest rice importers, is putting pressure on India to lift the ban on all non-basmati rice shipments, which was put in place in March.
Saudi Arabia imports nearly 1mn tons of rice annually - close to 5% of total consumption – with majority coming from India. In an interview with local media, Adnan A Al Naeim, the secretary-general of the Asharqia Chamber of Commerce said, "The Kingdom is not a rice-producing country; we are always under the control of exporters who dictate prices." Already the price of rice in the Kingdom has increased three times in recent months, sending shockwaves through the Saudi and expatriate communities alike.
Saudi commodity traders have signalled that they expect government intervention to force Indian rice exporters to honour the deals they had signed with them. One trader said that an agreement between Saudi Arabia and India in this regard is key to safeguarding Saudi rice reserves and maintaining reasonable prices.
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