According to local sources, Iran is expected to cut down on further imports in 2014 as it has additional stocks that accumulated from high imports last year as well as high periodic yield this year.
The Minister of Agriculture was cited as saying that there is as such no constraint on rice imports but the drop is only impermanent as the existing socks are adequate to come across the consumption needs of the country for the outstanding part of the year.
He noted that rice imports have been paused for last few months. He told local sources that the rice market is impartially controlled and prices change in line with demand and supply conditions.
Exporting countries like India and Thailand may fronting a rough time due to Iran’s stance of momentarily uncertain rice imports. The Middle East nation’s verdict to brush up the recognised level of arsenic content in basmati rice from 150 parts per billion (ppb) to 120 ppb has expressively condensed India’s basmati rice exports to Iran.
Its deportment to increase the import duty for basmati rice to 45% from 22% in September has further ridiculed down India’s basmati rice exports to Iran. Likewise Thailand is also trying to re-establish its exports to Iran after the Middle East nation halted imports from the South East Asian country succeeding a default by a private rice exporter in 2011.
According to data from Agricultural and Processed Food Products Export Development Authority (APEDA).Iran is a vital destination for India’s basmati rice and institutes about 30% of India’s total basmati rice exports. India exported around 1.44 million tons to Iran in FY 2013-14 (April – March), which is around 36% of India’s total basmati rice exports of around 4 million tons during the period.
USDA approximations Iran to produce around 1.683 million tons of rice and import around 1.7 million tons in MY 2014-15 (October – September) to meet the consumption demand of around 3.45 million tons.