A decision by the Indian government to levy a 20 per cent export tax on parboiled rice with immediate effect, according to a notification by the finance ministry late on Friday, will inevitably affect rice prices in global and local markets over time, said businessman Ibrahim Zainal.
However, this depends on stock quantities of rice in the country, and the tax period imposed by India, as international prices change on a daily basis, he said.
He stressed the need to increase rice stocks in the local markets so that the country would not be affected by any rise in rice prices in the future.
“There are alternatives to importing basmati rice, namely Pakistan, which is expected to reconsider its prices after India’s decision,” he told our sister paper Akhbar Al Khaleej.
“Types of rice differ from one country to another, so prices also differ accordingly,” he said, pointing out that Bahrain is fine because there are various sources of import.
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