Iran Limits Rice Imports From India


Iran has imposed various restrictions to curb imports of aromatic rice from India. Sources from Indian industries told Sputnik that Tehran has put upper limits for import and retail price of aromatic rice which is expected to hit Indian exporters in coming months.

New rule will not allow Indian exporters to sell their rice in Iran beyond $850 a ton which is far below the landed cost of $950 a ton of rice. Iran is major export destination for Indian rice traders. To supplement domestic production of about 2 million Metric Ton(MT), Iran imports about one million MT of rice every year out of which about 700000 MT is exported from India, government data suggests.

Last year, Tehran had rejected India’s rice consignment because of presence of pesticide residue. Last month, India had sent a 20 member delegation led by Chairman, Agricultural and Processed Food Products Export Development Authority (APEDA) to Iran for agri-products export promotions.

“Film of about 3.5 minutes duration was screened depicting different aspects of Basmati cultivation, processing, issue of health certificate and assurance of Indian rice being GMO free,” India’s Ministry of Commerce said.

Indian government and traders were expecting a notification from Tehran that would have allow resumption of issuance of permits for import of rice.  

“The deliberations helped to dispel the negative publicity which appeared in some part of Iran media causing doubts about the health and safety of rice from India,” exporters told after three day visit to Tehran in January.

Rice exports to Iran had witnessed a substantial jump during western sanctions on Tehran when India approved rupee settlement mechanism from April 2012.


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