India and Saudi Arabia are now locked in discussions regarding price mechanism and lifting of the ban on rice export to the Kingdom, according to Rajeev Shahare, deputy chief of mission at the Indian Embassy in Riyadh. “The Saudi Ministry of Commerce has written to India's Ministry of Commerce regarding the issue of resuming the export of rice to the Kingdom. Positive results are expected out of this bilateral talk,” Shahare said. He said discussions between the two commerce ministries are focused on current and future supply of Indian basmati rice to the Kingdom. Indian rice exports to Saudi Arabia was levied an export tax of $200 per ton of basmati shipments when global demand for rice increased. India, the world's second-biggest rice exporter last year, banned all non-basmati rice shipments in March. Shahare said India continues its export of basmati rice to the Kingdom, which amounts to 500,000 to 600,000 tons annually. He said it was the other rice brands, like permal, India's long grain rice, that were subjected to the ban. Saudi Arabia, saddled with rice shortage and sky-rocketing prices, has flouted the idea of investing in rice production in countries like Thailand, the Philippines and Vietnam. __
