Sugat hikes rice prices by up to 30%

Sugat rice Photo: Eyal Izhar

The commodities company says that the hike follows a crisis on the rice markets in Thailand and India.

 

Israeli food manufacturer Sugat is putting up rice prices by between 16% and 30%, sources inform "Globes," due to price rises on the Asian rice market. The products going up in price are Basmati rice, Persian rice and Jasmine rice. Sugat is currently informing the retail chains about the new price rises, which will presumably be passed onto consumers.

<p>Sugat had a controlling 63% stake in the Israeli rice market in 2017 and it is likely that other Israeli rice producers will follow suit and raise prices and pass on at least part of increased costs to consumers.

<p>Sources in the market told "Globes" that there are two factors pushing up rice prices. The first is that Thailand's currency has strengthened against the dollar - most of the Persian and Jasmine rice consumed in Israel is imported from Thailand. The second is that recent Thai rice yields have been diminished and of poorer quality. There is also a crisis in India's rice market, pushing up prices there. The crisis in the Asian rice market is likely to continue for at least the next 12 months.

<p>Sugat, owned by British commodities merchants ED&F Man controls a 1% of Israel's food market. In addition to rice it has 95% of Israel's white sugar market and 75% of the brown sugar market and 54% of the pulses and legumes market.

<p>The rise price rises are part of a wave of price rises over the past few weeks, which includes the toiletries products of Sano and Kimberly Clark, as well as imported frozen meat and tuna.

<p>Sugat said, "The rise in the prices of different rice categories stems from a deep crisis in the quality rice markets of Thailand and India. It is important to clarify that the vrise in prices on the Israeli market does not reflect the full strength of the crisis and the rise is lower than the rise in prices in India and Thailand. We are making maximum effort to provide consumers with Sugat rice of excellence quality and the required availability. The price to the consumer is set by the retailer."

<p><i>Published by Globes [online], Israel business news - <a href=http://www.globes-online.com>www.globes-online.com</a> - on June 14, 2018</i>

<p><i>© Copyright of Globes Publisher Itonut (1983) Ltd. 2018</i>

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Sugat rice Photo: Eyal Izhar
Sugat rice Photo: Eyal Izhar
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