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Domestic Economy

Iran 4th Biggest Importer of Rice in the World

Iran is the fourth largest importer of rice in the world with the annual purchase of 1.2 million tons worth $880 million, chiefly from India, according to a report by Iran Chamber of Commerce, Industries, Mines and Agriculture. 

The country is the 65th exporter of rice in the world, as it exports 4,000 tons of rice worth $2.5 million mainly to Turkey, Canada and Germany.  

Per capita consumption of rice in Iran, according to the Health Ministry, stands at 36 kilograms compared with 67.9 kilograms in developing countries, 12.4 kilograms in developed countries and a global average of 56.9 kilograms, Otaghiranonline.ir reported.  

Mazandaran Province is the biggest producer of rice in Iran with an annual output of 930,000 tons, followed by Gilan with 700,000 tons, Khuzestan with 403,000 tons, Golestan with 357,000 tons and Fars with 84,500 tons. 

A total of 86,500 tons of rice are also being produced by Kohgilouyeh-Boyerahmad, Isfahan, Lorestan, Chaharmahal-Bakhtiari, Zanjan, Qazvin, Khorasan Razavi, North Khorasan, Ardabil and Sistan-Baluchestan. All in all, the country produces 2.56 million tons of rice annually from 745,000 hectares.  

According to Masih Keshavarz, secretary of Rice Importers Association, until a few years ago, 85% of Iran’s rice imports were met through imports from Pakistan, but costs associated with transfer of money to the neighboring country was 16% more than imports from India. Imports from Pakistan have now decreased to 15% of the overall rice imports.

A total of 2.9 million tons of rice were produced in Iran during the last Iranian year (March 2020-21), but due to the 40% fall in precipitation, predictions are that this year there will be a decline in yields, according to the Agriculture Ministry’s director general of Grains and Essential Goods Department.

“In the last crop year, more than 803,000 hectares of paddy fields went under rice cultivation. The figure has declined to 611,000 hectares this year,” Faramak Aziz-Karimi was also quoted as saying by ILNA.

The official said that at present, the staple grain is being cultivated in 19 provinces across the country, namel, Gilan, Mazandaran, Khuzestan, Isfahan, Fars, Kohgilouyeh-Boyerahmad, Chaharmahal-Bakhtiari, Ilam, Qazvin, Lorestan, Zanjan, Sistan-Baluchestan, Kurdestan, Ardabil, East and West Azarbaijan, Khorsan Razavi, North Khorasan and Kermanshah.

“In the current crop year, land under cultivation and production in provinces other than the northern Gilan and Mazandaran are estimated to decline by close to 24% and 22% respectively compared with last year,” Aziz-Karimi said.

The water crisis in Iran has exacerbated to such an extent that agricultural officials have expressed concerns regarding rice farming even in northern Iran where precipitation levels are relatively higher.

In February 2019, former agriculture minister, Mahmoud Hojjati, said that amid low precipitation and water shortage, the government will restrict the cultivation of crops in areas where underground water resources have declined to alarming levels.

Later, the Cabinet decided to impose bans on rice cultivation in a phased manner in all Iranian provinces, except Gilan and Mazandaran.

Drought has inflicted losses worth 670 trillion rials ($2.6 billion) on Iran’s agriculture sector since the beginning of the current crop year. 

The seasonal ban imposed on rice imports has been lifted in the current Iranian year as per the decision of Market Regulation Headquarters affiliated with the Ministry of Industries, Mining and Trade.

The headquarters took the decision after taking into account this year’s estimated domestic production, imports and matters related with local market regulation, Mehr News Agency reported recently.

The Market Regulation Headquarters has announced that the measure has been taken to meet the country’s demand for the staple grain.

Every year and during the rice harvest season, the government bans rice imports in support of local farmers and domestic production. The ban usually begins in August and lasts until November.

According to Aziz-Karimi, over 73% of last year’s rice cultivation took place in the three northern provinces of Gilan (32%), Mazandaran (26%) and Golestan (15%), and 18% in the southern province of Khuzestan. 

The staple grain was also cultivated in 15 other provinces, which together accounted for 8% of the annual harvest.