November 29, 2023

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UAE meals importers transfer rapidly to restrict affect as a result of India’s non-basmati rice export ban

4 min read

Dubai: Meals merchants within the UAE are shifting swiftly to supply extra rice imports from different producer markets and compensate for the ban India has positioned on all non-basmati varieties.

Thus far, the Indian ban has had restricted affect on retail rice costs within the UAE, based on market sources.

“India has all the time been a significant provider of rice to the UAE,” stated Dr. Dhananjay Datar, Chairman and Managing Director of Dubai-based Adil Group, one of many greatest importers of Indian meals commodities. “There might be a right away scarcity of Indian rice within the native market, main to produce constraints.

“It may result in value volatility – the necessity of the second for merchants and meals importers within the UAE is to hunt alternate sourcing preparations.”

The most recent ban by India provides to the export restriction the nation has had on wheat for 2 years now. (The bans have been imposed to make sure adequate provide ranges for India’s home consumption.)

Rice isn’t the one subject on the desk that UAE’s customers, F&B companies, retailers and merchants have to maintain shut watch on over the approaching weeks. World wheat costs are already coming beneath stress as doubts resurface about regular Ukrainian provides by means of Black Sea ports.

World wheat costs have been inching up after doubts over clean shipments from the Black Sea ports.

Worth rises of meals commodities had been on the coronary heart of the inflationary pressures the UAE and Gulf economies skilled by means of most of 2022. For the reason that begin of the 12 months, meals costs had been dropping, and it was felt that by summer time charges would have settled all the way down to 2018-19 ranges.

Searching for various sources for rice largely depends upon availability. Many nations have confronted farming crises this 12 months. On the similar time, UAE growers have achieved immense success with blueberries and different greens. I count on this to be replicated quickly.

– A.A.Okay. Musthafa, Managing Director of AAK Group

However with the newest developments – India’s non-basmati rice ban and considerations about Ukraine wheat provides – have solid recent doubts on what may very well be in retailer for meals staples and their costs.

A extra gradual value rise?

Native importers may need a while to make these alternate sourcing preparations, whether or not that’s tapping suppliers in Thailand, Vietnam or Pakistan for rice, and Australia or different producers relating to wheat.

Plus, the truth that retail demand within the UAE will drop – even when barely – due to residents heading out for his or her summer time breaks will give the market that rather more time to put orders and have the shipments are available.

In different phrases, there may very well be much less stress on UAE retail degree pricing. Plus, given these are day by day necessities, the authorities might be monitoring the value scenario on rice carefully, retailers say.

“UAE wheat importers now supply from all attainable international producer-suppliers slightly than rely closely on one or two,” stated the top of commodity buying and selling at an area agency. “With the India ban on non-basmati rice, the identical choices exist for UAE merchants.

Dhananjay Datar
“India’s non-basmati rice ban will result in elevated reliance by UAE and Gulf meals merchants on Thailand, Vietnam and Pakistan for provides. However this might pressure these nations’ export capacities,” stated Dr Dhananjay Datar of Adil Group.

“I feel the scenario may be managed in a matter of weeks, and with out an excessive amount of of a value rise.”

Transport charges are regular

One other issue that ought to forestall a run up in meals costs pertains to the price of transport. All by means of the primary seven months, container charges on main routes had been regular or dropping additional. No matter be the case, transport prices won’t be inflating meals costs – no less than for now, which was not the case in 2021-22.

The excellent news is that previously three years provide chain and logistics challenges have been introduced nicely beneath management. Concerning the UAE, authorities, such because the DMCC, have established methods to discover various sources instantly after a disaster arises. Due to this, costs have stayed secure.

– Lal Arakulath, CEO of Kreol Group

In keeping with Datar, even then, ample warning have to be exercised to sort out the scenario. The onus rests on discovering alternate sources within the least attainable time.

“To navigate such challenges, UAE importers can collaborate with different rice exporting nations and discover options to fulfill demand for all main meals commodities,” stated Datar. “Solely prudent planning and flexibility can assist preserve meals stability throughout these unprecedented occasions.”

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