The price of basmati rice has climbed on rising demand from Iran, which plans to ban inbound shipments of India's signature grain.
According to Mohinder Pal Jindal, president of All-India Rice Exporters Association, Indian traders have been signing contracts and sending rice shipments ahead of a ban on Indian basmati rice starting July 22, as Iran seeks to protect its local industry.
India accounts for over 70% of the world's basmati rice, while Iran has long been a major importer of Indian basmati rice.
According to Iran's Deputy Agriculture Minister Ali Qanbari, Iran’s need for rice imports stands at 1 million tons annually.
Domestic demand is about 3 million tons per year, while production stands at 2 million. The Iranian government imposes a ban on rice imports every year during the harvest season to support local farmers. Rice is a staple food in Iran.
