JEDDAH — The Ministry of Commerce and Industry has threatened rice importers that it would withdraw the SR1,000-per-ton subsidy if they continue to increase prices without any genuine reason.
Hassaan Oqail, deputy minister for internal trade, said rice importers must fulfill certain conditions in order to receive the subsidy, which was ordered by Custodian of the Two Holy Mosques King Abdullah last December to offset rising prices.
“The importers should submit the bill of purchase attested by the chamber in the country of origin and a payment voucher from one of the local banks,” Oqail told Al-Eqtisadiah business daily.
Other documents required for the payment of subsidy are: A certificate attested by the port authority on the amount of rice imported; bill of lading attested by an intermediary bank and original copies of import statements attested by the customs department.
Oqail said any Saudi businessman, holding a commercial registration with the ministry, would be allowed to import rice and other foodstuffs. “It’s not the monopoly of any person,” he added.
He said businessmen intending to import rice should inform the Ministry of Finance and the Ministry of Commerce and Industry and submit copies of the bill of payment from a local bank within 15 days. “The Ministry of Finance will pay subsidy for the amount of rice released by the Customs Department, effective from Dec. 8, 2007. It will also pay a subsidy of SR12 per kilo for the amount of baby milk released by the customs from the same date,” he said.
Saudi Arabia is the largest importer of rice in the Middle East. It imported little under half of India’s total rice exports of 1.01 million tons in 2006-2007, while the rest of West Asia imported 291,000 tons, according to data from India’s Directorate General of Commercial Intelligence and Statistics.
According to the UN Food & Agriculture Organization, rice prices have risen 8.7 percent at international market since the beginning of last year. Despite subsidy, rice prices in the Kingdom remain high and traders blame it on old stock.
