• Domestic Economy

    Agriculture Ministry Launches Contract-Based Rice Production

    Contract-based cultivation of rice has been launched in Iran this year (started March 21) for the first time and more than 6,322 hectares of paddy fields have joined the scheme so far, according to CEO of the Central Organization for Rural Cooperatives affiliated with the Agriculture Ministry.

    “We estimate that a total of 15,805 tons of rice will be produced under the scheme carried out in the northern provinces of Gilan, Mazandaran and Golestan [Iran’s rice production hubs]. Up until now, we have distributed over 1,100 tons of seeds among farmers taking part in the plan,” Esmaeil Qaderifar was also quoted as saying by ILNA.

    Agricultural Production Insurance Fund, he added, has made sure all of these contracts are insured.

    “Seeds, fertilizers and pesticides are provided for farmers as part of the contract-based production scheme. The government plans to expand the scheme to all strategic agricultural products.”  

    A total of 2.25 million tons of rice were produced in Iran during the last Iranian year (March 2021-22), according to the deputy head of Iran Rice Union.

    “According to the Islamic Republic of Iran Customs Administration, more than 1.2 million tons of rice were imported last year,” Ahmad Eshraqi was also quoted as saying by the Young Journalists Club.

    Masih Keshavarz, secretary of Rice Importers Union, says although global rice prices, particularly in Pakistan and India, are relatively stable, prices in Iran’s market have been on the rise for a while. He blames public bodies who do not cooperate in coordinating import procedures, especially the Islamic Republic of Iran Customs Administration and the Institute of Standards and Industrial Research of Iran.

    Data released by the Statistical Center of Iran say rice prices nearly doubled (95% rise) in the month to Feb. 19 compared to the corresponding period of last year.

    According to the report, first-grade Iranian rice went for 673,004 rials ($2.5) per kg during the month under review, registering an 18.2% rise compared to the previous month.

    Rice prices have been quoted at much higher rates of up to 1 million rials per kilo ($3.8) in recent days.

    In the following month alone, rice prices rose a further 10.7%.

    Director General of Grains and Essential Goods Affairs Bureau with the Agriculture Ministry Faramak Aziz-Karimi said there are 654,000 hectares of paddy fields scattered across the country, 440,000 hectares of which are located in the three northern provinces.