Iran to increase import duty on basmati rice which is known for its aroma from 22 % to 40% in the FY 2014 which has affected the Indian export.

Iran used to import tea and  basmati rice from India to fulfill its people demand but because it has enough stock back home it has increased import duty on both tea and basmati rice.



Talking to Economic Times, CS Bedi, chairman of Rossell Tea, said that the Iranian generally come to India to import tea in  June-end and early July for the last two years.Though they will reach the country this year too as they have enquiries but they may come late as Iran has enough stock as it had lifted a good amount of orthodox tea in the past year.

India exported 25 million kg of orthodox tea out of total 225 million kg  to Iran in FY14. AN Singh, chairman of Indian Tea Association, said”We are expecting Iran to buy Indian tea from August onwards,”   

For basmati rice exporters too, business with Iran does not seem to be bright this time. Iran is a major buyer of basmati rice and in FY14 the West Asian nation had imported 14 lakh tonne basmati rice. India’s total exports of basmati in FY14 were 38.7 lakh tonne . 

Iran higher import duty on basmati rice has discouraged the export of Indian Basmati rice  and hence affected the export  buisness of the India.

In addition to increasing  import duty on basmati rice the Islamic countries has also set a new set of import standards. Vijay Sethia , ex-president of AIREA (ALL INDIA RICE EXPORT ASSOCIATION) said that Iran has revised the accepted level of arsenic in basmati rice from 120 ppb to 80 ppb (parts per billion). Due to this change, basmati exports to Iran may have temporarily slumped.”


The Iranian also wanted the arsenic level in basmati to be properly upto the set standards and also they will  check the basmati samples in their laboratories. This is a time consuming process but once every thing gets in order the buisness will again take up its speed said Vijay Sethia

However, it is not clear when will shipments to Iran will pick up. It is likely to happen eventually as Pakistan, the only other supplier of basmati-type rice to Iran, has lower stocks and has no formalised barter trade system with Iran.