According to local sources, as it has surplus stocks that accrued from high imports last year as well as high seasonal yield this year Iran is expected to cut down on further imports in 2014.
The Minister of Agriculture was mentioned that there is as such no restraint on rice imports but the reduction is only provisional as the prevailing hits are appropriate to meet the intake needs of the country for the persisting part of the year. He noticed that rice imports have been ceased for last few months.
He told local sources that the rice market is moderately organized and prices move alongside demand and supply situations.
According to data from Agricultural and Processed Food Products Export Development Authority (APEDA),Iran is an vital terminus for India’s basmati rice and generates 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 through the period.
USDA assessments for Iran to crop around 1.683 million tons of rice and import around 1.7 million tons in MY 2014-15 (October – September) to meet the intake demand of around 3.45 million tons
Indian rice exporters will be nastiest hit by a universal ban on imports of rice imposed by Iran recently. The Iranian ban will further slog unhappy prices of basmati rice in the domestic market.
Iran has striped rice from other countries as its local yield is described to be good this year and is set to reach in the market there.Teheran has imported over 1.25 million tonnes (mt) of rice this year during April-July against 1.45 mt in the same phase a year ago. Iran has purchased over 2.5 million tonnes of basmati rice from India in the last two years. MP Jindal, President of All India Rice Exporters Association, who is also Chairman of Best Foods International said, “We feel the ban is temporary, but it will hit the exporters. Prices will also come under pressure.”
Jindal also said, major exporters to Iran, said officials of the industry body are meeting the Commerce Secretary on Friday to take up the issue at government-level with Iran.
According to Agricultural and Processed Food Products Exports Development Authority (Apeda), basmati exports to Iran throughout April-July were prized at 1,732 crore touching 1,810 crore a year ago.
“Though the ban seems temporary, it may lead to loss of our market, which we may or may not regain,” said AK Gupta, Advisor to Apeda.
Gupta added, the exports to Iran were worse by about three lakh tonnes in the current financial so far. Generally, the basmati exports this fiscal may end lower by 5-7 per cent at around 3.5 million tonnes.
Currently, the basmati paddy is reigning at around 2,960 a quintal, far lesser than the 5,360 it realized during the same time a year ago, in the markets of Punjab and Haryana.
An exporter said, the market looks to have factored in the Iranian ban as the rumors have been fluctuating everywhere over past three weeks. Basmati prices are blue by about 30 per cent over last year, also induced by a higher crop in India.
Prior this year, Iran cut imports of India’s basmati rice once it imposed new standards on chemical adulteration.Disappointment over the quality of rice being produced by Indian exporters also directed reduction in shipments.India and Iran created a barter system two years ago to overcome Western sanctions resulting a disagreement with Teheran over its nuclear programme. In trade for Iranian oil, India offers Teheran rice, soya meal and pharmaceuticals.
Under the trade arrangement, India pays for portion of the crude oil it collects from Iran in rupees.The funds are then dropped at the Public sector UCO Bank and used to recompense exporters for shipment of food and other products to Iran.Exporting countries like India and Thailand may fronting a tough time due to Iran’s stance of temporarily halting rice imports. The Middle East nation’s decision to revise the accepted level of arsenic content in basmati rice from 150 parts per million (ppm) to 120 ppm has significantly reduced India’s basmati rice exports to Iran.
Its stand to upturn the import duty for basmati rice to 45% from 22% in September has further ignored down India’s basmati rice exports to Iran. Likewise Thailand is also trying to reestablish its exports to Iran after the Middle East nation halted imports from the South East Asian country following a avoidance by a private rice exporter in 2011.
An official of a rice exporting firm not wishing to identify himself. “Exporters will take a hit since prices are bound to fall in view of the ban. They deserve it since they have been ignoring other markets at the cost of focusing on Iran.”
India is now giving greatly for concentrating on only Iran to export soyameal. In September, soyameal exports plunged to lower than 1,000 tonnes in view of Iran hurtful its imports.