Dubai's rice trade value leaps by 155% in 1st half 2008

Figures released by the Statistics Department of Dubai World also showed that the growth is by 42.2% in terms of volume over the same period.

According to the department figures, the total value of Dubai's import and re-export of this vital commodity reached Dhs3.043bn (about $829m) during the first half of 2008, compared to Dhs1.191bn (about $324m) during the same period of 2007 - an increase by Dhs1.85bn (about $504m), while the volume rose from 579,000 tons in first half of 2007 to 823,000 tons in first half of 2008- an increase by 244,000 tons.

This trade surge reflects the radical changes in the food habits among a very large segment of the community as a result of the global rise in price for most food materials. Most families seem to have begun avoiding other food items classified as luxuries. In addition, rice is a major component of food that can be an alternative meal in the light of the surge in the prices of various food products, not only in the local market, but also at global level.

The Statistics Department figures showed that Dubai's rice import in the first six months of 2008 rose to a value of about Dhs2.287bn and by 585000 tons in terms of volume. It was Dhs927m and by 445,000 tons during the same period in 2007. Rice re-exports recorded a remarkable growth, totaling about Dhs755m and by 238,000 tons compared to the 2007 period, which were Dhs264m and by 133,000 tons.

India topped the list of countries exporting rice to Dubai at a value of Dhs1.549bn, accounting for 67.7% of the total trade in the first half of 2008. Pakistan came second with Dhs610m, which is about 26.6%, while Thailand was at third place with export value of Dhs95m, which is 4.2% of the total trade. Other countries constituted a combined value of Dhs32m, not exceeding 1.4%.

Iran had the lion's share in the re-export of rice from Dubai at Dhs.657m, which is 87%. Iraq comes second at Dhs40m - 5.4%, followed by the United States of America at Dhs8.4m - 1.1%.