Indian eateries in UK hike prices

A meal in an Indian restaurant in London has become costlier due to stronger rupee and restrictions on supplies and exports necessitated by growing demand within India for basmati rice.

According to a London-based Rice Association, the strengthening Indian rupee has increased sterling import costs by more than 10 per cent between August 2006 and January 2008.

As a result, Indian restaurants in places such as London, Leicester, Birmingham and Bradford have recently hiked prices. Leicester businessman Jiva Odedra said the price-hike was coming at a time when fewer people were dining out because of economic woes.

"Fewer people are going out to eat because they have less disposable income at the moment," he said. 
In its latest industry review, the Rice Association said that despite record production of around 420 million tonnes, world rice prices were rising strongly. That was because the consumption was still higher at 423 million tonnes.

Global rice stocks, it said, were falling, and were now at lowest level since 1983-84. The association said that basmati prices of traditional varieties were up by 100-120 per cent since the harvest of 2006.

Besides, prices of evolved varieties had doubled since September 2006, and strong demand meant that higher prices were likely to be maintained.

In the European Union, it said, the absence of USA rice due to exclusion from EU market in 2006-07 had increased demand for basmati.

Also, strong export demand was reported from the EU as well as in the Middle East for both India and Pakistan basmati, it added.