According to Ministry of Commerce and Industry sources there haven’t been any observed artificial hikes in rice prices at present. However, several cooperatives have stated that the recent decision by the Indian government to set a minimum price for exported basmati rice will have limited impact, as citizens predominantly rely on locally grown rice supplied by the state.
This decision is not expected to deter cooperatives from rejecting price hikes by suppliers without consulting the Union of Cooperative Societies. They’re advocating for diversifying imported basmati rice sources and expanding cultivation beyond Kuwait’s borders.
Conversely, wholesalers in the Shuwaikh area have conveyed that basmati rice prices have remained stable for six months. In contrast, the prices of white rice have recently surged by about 800 fils for a 20-kilogram bag due to India’s suspension of its export.
Despite India’s decision to impose a minimum export price of $1,200 per ton for basmati rice, wholesalers expect the Ministry of Commerce and Industry’s vigilant market oversight will prevent a rise in basmati rice prices in Kuwait.
Cooperative societies’ representatives emphasize their substantial strategic stocks of basmati rice, with quantities sufficient for more than six months.
They assert their commitment to adhering to decisions made by the Federation of Cooperative Societies and reject any price hikes not authorized by an official circular. They highlight Kuwait’s substantial supply of locally grown subsidized basmati rice, underscoring the government’s past initiative to cultivate the staple food in India.
Wholesalers affirm that the recent Indian export price increase of basmati rice shipments to $1,200 per ton is unlikely to significantly impact the price per kilo in Kuwait. The prices for three different types of basmati rice, each weighing 20 kilograms, are trading similarly in the market. These wholesalers do not anticipate any immediate impact on Kuwaiti basmati rice prices due to India’s new export policy.
Overall, while the Indian government’s decision may eventually influence the global basmati rice market, Kuwait’s cooperative societies and wholesalers expect the stability of local basmati rice prices to prevail due to the measures in place by the relevant authorities.
Read Today's News TODAY... on our Telegram Channel click here to join and receive all the latest updates t.me/thetimeskuwait
