The import of rice has been practically banned since early November and no kind of rice can undergo customs clearance, according to the head of Rice Importers Association of Iran.
“Respective officials have cited ‘balancing out bilateral trade’ as the reason for banning rice imports from the countries we normally purchase the grain from,” Karim Akhavan-Akbari was also quoted as saying by the news portal of Iran Chamber of Commerce, Industries, Mines and Agriculture.
His comments came after it was earlier announced that only Indian rice imports were banned.
The official said the government decision would cause shortage in the domestic market, since local production cannot meet domestic rice demand.
“So far this year, close to 1.27 million tons of rice have been imported. Our annual import demand stands at 1.5 million tons. Therefore, we need to purchase nearly 250,000 tons of the grain by the end of the year [late March],” he added.
Akbari noted that year-on-year inflation for top quality Iranian rice stands at 123.1%, adding that for high-quality foreign rice, the rate stood at 45.9% in the month ending Dec. 21.
“The first six deciles of the country consume imported foreign rice, due to their more reasonable prices. The ban set on imports can result not only in rice shortage, but an increase in prices. In our country, rice is a staple food, coming in second after wheat in the list of the most consumed grains. Therefore, this measure can impact a large number of population, particularly the ones with more modest means,” he said.
His remarks came after the deputy head of Rice Importers Association of Iran, Salar Saket, echoes similar concerns.
“Indian rice accounts for the highest proportion of imported rice due to its high quality and reasonable price. Iranians prefer Indian rice over other foreign types of rice and importers trade commodities for which there is demand in the market. The rice we purchase from India meets the needs of six underprivileged income deciles and also balances the price of Iranian rice. So, it is only obvious how this ban on imports can damage the market,” he said.
The ban, which was put into effect around a month ago, also applies to the import of tea from India.
“It will be lifted as soon as bilateral trade is balanced out or registers surplus,” Secretary of Iran’s Rice Suppliers Commission Masih Keshavarz was quoted as saying earlier.
A total of 1.75 million tons of rice were imported into Iran during the last Iranian year (March 2021-22). The import volume set a 10-year record high, he added.
“Last year’s imports were more than twice the volume needed to compensate the domestic production deficiency,” Jamil Alizadeh Shayeq was also quoted as saying by Mehr News Agency.
A total of 2.25 million tons of rice were produced in Iran during the fiscal 2021-22, according to the deputy head of Iran Rice Union, Ahmad Eshraqi.
$1b Worth of Imports During 5 Months: IRICA
More than $1 billion worth of rice were imported to Iran during the first five months of the current Iranian year (March 21-Aug. 22), latest data released by the Islamic Republic of Iran Customs Administration show.
India was the biggest exporter with $583 million worth of exports followed by Pakistan with $350 million, Thailand with $79 million and the UAE with $60 million.
According to IRICA, $21.63 million worth of rice were imported to Iran’s free trade zones during the period.
Rice consumption in Iran currently stands at around 3 million tons per year, about 70% of which are supplied through domestic production, according to Alireza Mohajer, a deputy agriculture minister.
India has long been a major exporter of rice to Iran. Other exporters include Pakistan, the UAE, Thailand, Turkey and Iraq.
The three northern provinces of Gilan, Mazandaran and Golestan produce are Iran’s rice production hubs.
FAO Forecast
The Food and Agriculture Organization of the United Nations expects Iran’s rice production to reach 3 million tons in 2022, down from 3.1 million tons last year. Five-year average output has been put at 3.5 million tons.
In its biannual report on global food markets, FAO said Iran imported an average of 1.3 million tons of rice during the 2018-20 period.
The 2018-20 average production has been put at 2.5 million tons.
Consumption is forecast to slightly increase from 3.6 million tons in 2021 to 3.7 million tons in 2022.
Average utilization during crop years 2018-19 to 2020-21 stood at 3.6 million tons.
The average closing stocks in 2022-23, 2021-22, and 2018-19 to 2020-21 have been put at 0.6, 0.5 and 0.7 million tons respectively.
The 2018-19 to 2020-21 average per capita has been put at 38.2 kilograms.
Limited availability of water for irrigation clouds rice production outlook for Iran, the report said.
“International trade in rice is predicted to register its third successive annual increase in 2022, with volumes exchanged across the world forecast to reach 53.1 million tons, up 3% from the 2021 all-time high. With the exception of Far East Asia, most regions are anticipated to step up their imports over the course of the year, often aided by state efforts to contain inflationary pressure. Such steps have taken the form of import duty remissions in various African and Latin American countries, or of an acceleration of government-contracted imports, as has been most notably the case of Iraq and Iran,” the report concluded.
