The price of imported rice is surging in the Kingdom due to a lack of supply from India, which is facing its own high demand.

Prices are likely to rise further after they rose 20 percent within a single month. In fact, popular varieties of Basmati rice remain hard to find at retail outlets despite this price hike.

A 10-kg bag of Kernal Basmati, which was selling at SR52, is now being sold at SR62 and is out of stock at many stores, including popular hypermarkets.

Mohammed Al-Shalan, a leading rice importer in the Kingdom and a member of the Food Security Committee at the Riyadh Chamber of Commerce, blamed price hikes on cost factors and supply and demand dynamics in India.

One trader told Arab News that the situation is so dire that the price of Thai rice, which is usually lower than the price of Indian rice, is now in the same range.

Some traders have taken advantage of the situation by selling substandard rice. Many, for instance, are duping customers into believing they are purchasing genuine Sona Masuri rice, popular in the Indian state of Andhra Pradesh, which they sell for a staggering SR85 to SR90 per 20 kg.

Rice is a major staple food in the Kingdom, with an annual per capita consumption of approximately 42 kg. This figure is expected to rise further.

Saudi Arabia relies on rice imports from abroad to meet demand. There are about 17 large rice importers out of total 180 in Saudi Arabia.

Six importers account for 63 percent of the total volume of rice imports. Over 80 percent of Saudi rice imports constitute the Basmati variety from India. In addition, leading Saudi rice importers have a significant presence in India, according to traders.

Rice is imported in packed bags of five, 10 and 40 kg. The 10-kg bag is the most purchased size, as it is convenient to carry. Basmati is the most popular rice among both Asian and Arab expats and Saudis. Milled Basmati is commonly purchased by Asians and the Sella Basmati, which has the largest market share, is mostly popular among Arab nationalities.