Hike in prices of rice to pinch people hard

People from middle and lower income groups fear that their domestic budget will be affected by the price hike.

The executive sub-committee for consumer protection in the Ministry of Economy has stated that the prices of rice cannot be allowed to go up by more than 20 per cent. This was after the suppliers requested for a price rise.

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As Jacob Cherian, a manager in Commodity Intertrade LLC, a company supplying essential commodities including rice, said, “There has been a drop in the supply of rice. The most popular Basmati rice comes from India and Pakistan. Then there are Vietnam and Thailand which export the non-Basmati variety to the UAE. There have been natural calamities in both India and Pakistan and the production of rice has not been at par with the previous years. Hence, there is a shortage.”

“A major portion of Basmati from India is re-exported to countries like the United States. People here prefer the Basmati from Pakistan as it is cheap. We don't think that the rise in prices would be affecting people in a big way. Rice is an essential commodity and people will buy it. We were forced to request for a price rise because of the short supply,” he added.

At present, the price of 1kg of Basmati from India is Dh4.6 while the Pakistani Basmati costs Dh3.85 a kilogram.

Representatives of various supermarkets stated that the rise in prices of rice would not have a negative impact on the market. “Right now there is no shortage of rice in the supermarket. And the price rise would not have much effect. There might be some problem, but then people cannot stop eating rice. We don't think it would affect the sales in any way,” said a representative of the Al Maya Group.

But, as Shanti Rastogi, a housewife living in Bur Dubai, said, “The 20 per cent increase in the price of a 39kg white Basmati, which was Dh139 until March, would make a huge difference. We would have to cut down on our other expenses in order to absorb this hike.”

Another consumer, N. Ramesh, said, “Rice is a staple diet for most Indians, especially Keralites. Besides, for the labour class too, rice is part of their daily meals. The price hike of essential commodities, including rice, will pose a big problem for labourers and middle class families. We cannot give up on our staple food, but we can now only reduce our consumption to offset the 20 per cent hike in prices of rice.”

The authorities should enforce strict curbs on price hike of essential commodities, failing which families will be faced with the basic problem of existence and survival in the UAE, some of the consumers noted.