A Market Report on Rice in the Kingdom of Saudi Arabia
Consulate General of India Commercial Section
JED/COM/201/7/2006
A Market Report on Rice in the Kingdom of Saudi Arabia
MARKET OVERVIEW Rice is the most important staple food for about one-half of the world population and provides over 20 percent of the global calorie intake. As most of the rice produced is consumed domestically, only 4% of global production is internationally traded. The world rice market is also featured by a high degree of concentration with Asia accounting for nearly 90% of global production and consumption. The market for rice in the Kingdom of Saudi Arabia is geared to trading of imported varieties of rice, while little efforts have been made to grow locally as climatic conditions in Saudi Arabia are generally unsuitable for this crop. In quantity terms, the overall domestic market demand for all types of rice in Saudi Arabia reached 787,000 tones in 1999. Meanwhile, Food and Agricultural Organization (FAO) projected import for rice by Saudi Arabia could reach 1,342,000 tones in 2005, suggesting a yearly compound growth rate of 11.3% in the five year period. In value terms, the overall market value for all types of rice in the Kingdom of Saudi Arabia was estimated at SR 2,500 million in 1999, slightly more than three times its market size of SR 750 million and 250,345 tones in 1989. With a high population growth rate along with a rapidly expanding number of pilgrims, Saudi Arabia’s aggregate consumption of rice was growing at a yearly compound rate of 12.1% since 1989. In the last decade, total rice consumption in the Kingdom of Saudi Arabia grew at a much faster rate than the population growth, expanded by 3.1 folds compared to 1.56 times of population growth. During the same period, the corresponding per capita consumption of milled rice was doubled and rose from a yearly 17.86 kg per person in 1989 to 35.90 kg per person in 1999. Preliminary estimates suggest that the per capita rice consumption in the Kingdom of Saudi Arabia would
JED/COM/201/7/2006
A Market Report on Rice in the Kingdom of Saudi Arabia
MARKET OVERVIEW Rice is the most important staple food for about one-half of the world population and provides over 20 percent of the global calorie intake. As most of the rice produced is consumed domestically, only 4% of global production is internationally traded. The world rice market is also featured by a high degree of concentration with Asia accounting for nearly 90% of global production and consumption. The market for rice in the Kingdom of Saudi Arabia is geared to trading of imported varieties of rice, while little efforts have been made to grow locally as climatic conditions in Saudi Arabia are generally unsuitable for this crop. In quantity terms, the overall domestic market demand for all types of rice in Saudi Arabia reached 787,000 tones in 1999. Meanwhile, Food and Agricultural Organization (FAO) projected import for rice by Saudi Arabia could reach 1,342,000 tones in 2005, suggesting a yearly compound growth rate of 11.3% in the five year period. In value terms, the overall market value for all types of rice in the Kingdom of Saudi Arabia was estimated at SR 2,500 million in 1999, slightly more than three times its market size of SR 750 million and 250,345 tones in 1989. With a high population growth rate along with a rapidly expanding number of pilgrims, Saudi Arabia’s aggregate consumption of rice was growing at a yearly compound rate of 12.1% since 1989. In the last decade, total rice consumption in the Kingdom of Saudi Arabia grew at a much faster rate than the population growth, expanded by 3.1 folds compared to 1.56 times of population growth. During the same period, the corresponding per capita consumption of milled rice was doubled and rose from a yearly 17.86 kg per person in 1989 to 35.90 kg per person in 1999. Preliminary estimates suggest that the per capita rice consumption in the Kingdom of Saudi Arabia would
Bibliography: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Saudi Ministry of Economy and Planning, Export Import Statistics from 2000 till 2004. Agricultural & Processed Food Products Export Development Authority www.apeda.com) Saudi Arabian Standards Organisation (www.saso.org) www.basmati.com www.itcibd.com Saudi Department of Customs (SADC), (www.customs.gov.sa) www.oryza.com www.foodbycountry.com http://www.dacnet.nic.in www.fas.usda.gov Prepared by: Mohammed Anas Kader (MRA), Commercial Section, Consulate General of India. Edited by: Mr. Ashok Kumar, Consul (Commercial), Consulate General of India, Jeddah, KSA. N.B.: Views expressed have been compiled from various sources. The reports are edited to fit in the material taking utmost care of not altering the contents of the reports. The editorial board has also tried to ensure to the extent possible to avoid errors. However, if there are any errors, these may be brought to our notice. 24