Saudi Arabia: India's Loss Is USA's Gain

Indian exporters are losing their single biggest rice market to the United States as expensive basmati rice has forced the Saudi Arabian consumers to shift to cheaper alternatives.

According to industry experts, importa of US long grain into Saudi Arabia have shot up this season while basmati contracts are still scarce. Initial Saudi trade estimates show that while the volume of US long grain import may double from 2 lakh MT last year to 4 lakh MT in 2007, basmati volumes are slipping from 6 lakh MT to 4.5 lakh MT.

With Saudis reluctant to buy basmati, Indian basmati exporters may be left with no option but to depend mainly on the European market for business which is very tough on its import quality standards.