*Rice on ration in Abu Dhabi to prevent stock

By Samir Salama, Associate Editor
Published: June 08, 2008, 23:39

*Abu Dhabi:* The government has begun rationing sales of subsidised super
Basmati rice to prevent stockpiling by customers who are worried by the
soaring price of staple food.

The Abu Dhabi Foodstuff Distribution Centre has restricted sale to family
with a maximum of 120kg a month to prevent bulk buying by residents, Saeed
Butti Bin Hamarain Al Muhairibi, manager of the centre, said on Sunday.

"We do not have any problem with supply but the demand on subsidised rice
enormously increased over the last two months and prompted rationing the
food. The centre serves up to 500 customers a day, whose purchases amount to
40,000kg."

A 40kg bag of super Basmati rice is sold to Emiratis at the centre for
Dh120, while the market price of the bag is above Dh350.

Al Muhairbi said a family of two members can buy 40kg every two months, a
family of three to six members can buy a 40kg bag every month, a family of
seven to 10 members can buy 80kg of rice every month while a family of 11
members or more can buy 120kg every month.
Salma Al Junaibi, director of Tenders and Procurement Department at Abu
Dhabi Municipality, ruled out any immediate plans to ration any other
subsidised staple food.

Some customers complained that the rice ration is not enough and that they
are forced to buy more quantities from the market at much higher prices.

Bakhit Khamis Al Mansouri, a businessman, said he has a family of nine
members and gets two 40kg bags every month. They consume six to seven bags,
as they eat rice twice everyday.

Faisal Ahmad Hassan Al Marzouqi, a retired employee, said two 40kg bags
every month are more than enough for his nine-member family as they eat rice
only once a day.

Other customers suggested that more rice distribution centres should be set
up in Baniyas and Al Shahama to serve customers from Al Khatam and Al
Wathba.

In a recent Gulf News poll, 61 per cent of respondents said they eat rice on
a daily basis, 13 per cent said they eat rice thrice a week and 12 per cent
said they have it twice a week. Nine per cent said they ate it once and the
remaining five per cent said they never eat it.

Rice shortage after a number of rice-producing countries limited or banned
exports to secure domestic supplies has pushed up the global price of the
crop.

The price of Basmati rice in the local market has surged by 87 per cent from
Dh8.5 to Dh13 per kg and prices of non-Basmati rice have gone up by 25 per
cent from Dh15 per 5kg to Dh20, since the beginning of 2008.

Prices of all varieties of rice are expected to rise in the UAE following
India's decision not to relax a ban on rice exports imposed in March.
Distributors in the UAE said prices of rice would come under pressure as the
stock is fast depleting.

How much rice does your household consume on a monthly basis? What more
could be done to reduce the issue of rice shortage in the UAE? Do you think
the shortage is due to lack of supply in the market or wastage?