[2007-09-12]  Hike in Indian Rice Price Is Market-Driven
A senior Indian diplomat said yesterday the 60 percent hike in the price of Indian Basmati rice is not only market-driven but also partly due to the appreciation of the Indian rupee vis-a-vis the Saudi riyal, the latter of which is pegged to a weakening US dollar.

In a press conference held at the Indian Embassy, Rajeev Shahare, deputy chief of mission, also disclosed that an education fair would be held in the Kingdom in November. He also said the State Bank of India would open a branch in Jeddah in the near future.

Responding to a question on the growing concern in the Kingdom on the increase in the price of Basmati rice, Shahare explained the various factors responsible for the situation. He said this particular variety of rice was grown only in Dehradun in the northern part of India and because of its superior quality it was much sought-after compared to other cheaper varieties. He rejected suggestions that suppliers are hoarding stockpiles of the grain to boost prices.

As for the opening of the SBI branch in Jeddah, Shahare declined to comment further.

On the subject of ongoing talks regarding an India-GCC free trade agreement, Shahare said the next round of talks would be held in New Delhi; he didn’t say when.

The embassy, he said, is organizing a buyer/seller trade event for the first week of December. Other events in the offing are: A medical tourism fair in January/February 2008; an India-Saudi business seminar in November and December of this year. Bilateral trade between India and Saudi Arabia has touched a new high with $ 5.5 billion, up from $3.7 billion in 2005.

On the cultural side, an exhibition of Islamic artifacts is being planned in January and February 2008.

Earlier, he spoke about the visit to Jeddah of the Indian Prime Minister’s special envoy for the Middle East Peace Process (MEPP), Ambassador C.R. Gharekhan. During his visit he met with Saudi Foreign Minister Prince Saud Al-Faisal, and Secretary-General of the National Security Council Prince Bandar ibn Sultan. He also interacted with Saudi think-tanks, media and prominent Indians.

Gharekhan reiterated India’s unwavering support for the cause of Palestine. “We shall be seeing active involvement of our special envoy in the coming days as has also been indicated by the Saudi leadership,” he added.







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