Saudi Arabia, UAE seek more Thai rice

So far, major rice-exporting countries such as Vietnam, India and Egypt have banned exports of their rice to ensure food security.

India, the world's second-biggest rice exporter last year and the main supplier to the Gulf region, banned all non-basmati rice shipments in March.

The Gulf Daily News said supply curbs, such as New Delhi's, have spooked importers, such as the Philippines and Bangladesh, at a time when global stocks have halved since hitting a record high in 2001, causing benchmark Thai prices to nearly treble this year.

But earlier this month, India's Food Secretary T Nand Kumar said that India would soon consider selling limited volumes of the Asian

staple to its neighbours or countries with which India had a "strategic interest".

"Most of the importers in Saudi Arabia and the UAE are planning to secure more rice supplies from Thailand instead of waiting for India to lift its export ban," a Gulf food importer said.

"Prices are skyrocketing, but we are very keen on securing enough supplies from Thailand, which is the most suitable option for the time being."

Last year, Saudi Arabia imported 960,000 tonnes of rice, making it the world's sixth-biggest rice importer, according to US Department of Agriculture data.

About 70 per cent of Saudi rice imports were basmati rice, while Thai rice accounted for 10 per cent, traders said, adding the country is likely to start investing in rice farms in Thailand by the end of this year.