BCSR released a report on rice prices in the Kingdom of Bahrain, in which it was noted that the general increase in rice price imports was 30.8% over the period 2002 to 2007. This price increase was noted particularly last year when the increase in the price of imported rice was 20%. The increase in the price of Thai rice was the highest at 75.7%, compared to Indian rice which was 25.5%, and for Pakistani rice 32%.
The report stated that the average import cost of a kilo of rice from India in 2007 was 203 fils compared to 274 fils for Pakistani rice, and 211 fils for Thai rice. Bahrain's import of rice was 43,000 tons in 2007, with an average annual import of 44,000 tons during the period 2002 to 2007. The cost of these imports increased from BD7.9 million to BD10.7 million, with an increase in the average cost per kilo from 191 fils in 2002 to 249 fils per kilo in 2007. The highest increase in import costs was recorded in 2007 at 20%.
Pakistan is the most important source of rice for Bahrain, representing 64% of rice imports, followed by India with 28%, and then Thailand with 5% during the period 2002 to 2007. However, the quantity of imported rice from Pakistan witnessed a sustained decrease over the period 2004 to 2007, which was compensated for by rice from India. Indian rice is generally less costly.
The report mentions that rice prices have witnessed a record increase internationally during the previous months unmatched in the last 20 years, which has led to concern among states and international organizations, especially the F.A.O. Among the reasons for the increase in prices were - decreased production versus increased demand due to the increase in population dependent on rice as the main dietary staple, together with international inflation due to the increase in oil prices.
The G.C.C. countries are the major market for Indian and Pakistan exports of Basmati rice. Saudi Arabia received 65% of Indian exports of Basmati rice, while Kuwait received 10% and the Emirates 5%. The F.A.O. expects the world production of rice to increase during 2008 by 1.8% or 12 million tons, and it is expected to reach 667 million tons per annum. However, this is not enough to fulfill the increased demand for this vital dietary staple, and this will result in pressures on prices in the short term pushing the prices up. In fact the price increase for rice this year has been 20% since January 2008.
This year it is expected that rice production will increase in Bangladesh, China, India, the Philippines, Thailand, Egypt, Guinea and Nigeria, however, demand for rice will still be greater.
