There Is Concern That After Rice, Onions Will Make The Expatriates Cry

Manama: After India imposed a ban on rice exports, the imposition of 40 percent export duty on onion may harm the Gulf diaspora. Indian onion has a huge demand in Gulf countries. Concerns have been raised that the stoppage of inflows from India, a major exporter, will have a major impact on the Gulf market.

India imposed a 40 percent duty on onion exports to ensure availability of onion in the domestic market. Due to crop damage due to heavy rains, availability of onion in the Indian market has decreased. August is the main onion harvesting season in the country. The central government intervened in the market to contain the rise in onion prices as it is a major food crop used by Indians.

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Last day, the central government’s announcement came to increase the duty on onions. With this, the price increase may come into effect soon. India is the largest onion exporter in the world. This will lead to an increase in the price of India’s onion in the entire GCC countries including Saudi Arabia, UAE, Bahrain, Bangladesh, Malaysia, Nepal and Sri Lanka, which are the largest consumers of Indian onion.

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Earlier India’s ban on exports of white rice (polished variety) other than Basmati due to production shortages had hurt the Gulf countries. Prices of most varieties of rice have increased in the Gulf countries. To ensure the availability of rice in the GCC countries, rice imports from countries like Vietnam, Thailand, Pakistan, Bangladesh and the Philippines have been increased, but market prices have risen.

Basmati rice is now readily available in the Gulf countries. While other varieties of rice are in stock, the market is affected by reduced availability from India. To ensure the availability of rice in the GCC countries, rice imports from countries like Vietnam, Thailand, Pakistan, Bangladesh and the Philippines have been increased.

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Although there is no ban on basmati rice, which is mostly used by North Indians, Pakistanis and other Asians, the ban on pachari, jeerakashala, sona masuri etc. has affected the diaspora in the Gulf countries. Jeerakashala rice is what Malayalees mostly rely on for Naichor and Biryani. The increase in vegetable prices has affected hotels and expatriates. India controls more than 40 percent of the world’s rice exports.