Basmati Rice Export may be dip by 10% this fiscal year after temporary ban by Iran, largest buyer of Indian Basmati rice according to the industry estimates.

India may soon be able to export its basmati rice to Iran as the top officials of country has assured that the Iran’s ban was temporary and is soon likely to be lifted and the process of registration of suppliers will continue soon.

India exports about 37% of its total Basmati rice to Iran. Of its total Export volume of 3.7 MT of Basmati rice it exports about 1.4 MT to Iran during FY 2013-14.

Due to carried over stock from previous fiscal year Iran may not import this much high export volume and the export volume for the FY 2015-16 would be around 9 lakhs MT.

Iran’s annual rice consumption of Basmati rice is estimated around 3 MT of which its local rice production is 2 MT and rest it imports from India.

The Rice Export after resuming the ban may not be as brisk as it was before ban as Iran still have glut in their domestic market. An Official from Commerce Ministry Said that”We were assured by the Iranian government that they will soon resume the ban as the glut in their domestic market has eased substantially”

Rajen Sundaresan from the All India Rice Exporters Association (AIREA).who was the part of the business delegation that accompanied the Indian officials who visited Iran said that they have to check out what was the cause for the Iran’s ban.

He said that we expect the Iran’s rice import from India to be 3-5 lakh tonnes (lt), as it will not be possible to touch the earlier highs and Indian basmati rice export will be dropped by 10% year on year.

Iran will provide a notification to India on lifting curbs on March 31 and will resume the process of pre-registration of Basmati rice suppliers.