Economy, Domestic Economy

Indian Rice Prices Increase

Indian Rice Prices IncreaseIndian Rice Prices Increase

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.