22 November, 2007 – India is in danger of losing its single biggest rice market to the US - as price hikes in its basmati strain are forcing consumers in Saudi Arabia to find cheaper alternatives.
The report, issued by the US Government, said that imports of long grain rice from the US to the Arabic kingdom have soared this year while basmati contracts from India have been relatively few in number.
Estimates issued by the Saudis indicate the amount of US rice purchased looks likely to double to 400,000 tonnes in 2007, while volumes of Indian basmati look likely to tumble by 25 pct from 600,000 tonnes to 450,000 tonnes.
US long grain rice is selling for around US$425 a ton while its India rival carries a price tag of at least US$1,150.
Indian suppliers are now reported to be developing a new strain of rice based on the US long grained variety that is at least US$20 a bag cheaper than basmati.