Saudis worry as Indian rice cost rises nearly 60 pc

DUBAI: There is growing concern in Saudi Arabia about the price hike in Indian Basmati rice by nearly 60 per cent, but Indian officials said the rise in prices is largely market-driven.

The 60 per cent hike in the price of Indian rice is not only market-driven but also partly due to the appreciation of the Indian rupee vis-a-vis the Saudi riyal, Rajeev Shahare, deputy chief of mission in Riyadh, said on Tuesday.

Shahare said there were various factors responsible for the situation since this particular variety of rice was grown only in Dehradun and because of its superior quality it was much in demand compared to other cheaper varieties, Arab News reported.

He, however, rejected suggestions that suppliers are hoarding stockpiles of the grain to boost prices.