The United Arab Emirates (UAE) is likely to face a hike in rice prices after India increased the minimum price for overseas shipments of basmati and non-basmati rice in an attempt to boost local supplies and curb domestic inflation.

With the new minimum prices, Indian rice exporters can export non-basmati rice for not less than Rs 26,000 PMT and exports of aromatic basmati rice, has had a price floor set at Rs36,000 PMT.

The price hike is quite likely as UAE's import options are limited, because Thailand and Pakistan – the two main alternative markets to Indian rice – have also increased prices due to increasing demand.