According to the news released, it has been indicated that in an effort to get around Iran’s restrictive import permits on India’s basmati rice, it has been noted that the Indian rice is first being shipped to the United Arab Emirates (UAE) and then on to Iran. It has been narrated that Iran imports about 100,000 tons of basmati rice on average each month. As per reports it has been highlighted that in August-September 2015, Iran imported about 81,000 tons from the UAE, which is up from 18,000 tons in the same period a year ago.
Further, it has been informed that Iran stopped issuing import licenses for Indian basmati rice in October 2014 but is soon expected to lift restrictions as they are viewed as pointless since Iranian rice imports are still finding a way to bring Indian rice into the country. However, Iran’s restrictions have reduced India’s basmati rice exports from about 1.4 million tons in 2013-14 to 930,000 tons in 2014-15, as reported by the India’s Agricultural and Processed Food Products Export Development Authority and thus have severely weighed on domestic basmati prices.