Rice price falls after block on imports

20.09.2016

Curry lovers are in for a boost as the cost of Indian basmati rice is set to plunge.

International prices had already tumbled after Iran slapped a ban on buying rice from abroad.

Importers say they could now fall below £350 per ton, an all-time low set during a Iran's last embargo in November 2015.

Iran is the world's biggest importer of Indian basmati rice, buying 20 per cent of the country's rice exports.

They imposed the latest ban in July to protect their own farmers' incomes during rice harvest. The news initially caused prices to climb but last month they began falling due to an oversupply.

Prices have now dropped to £467 per tonne and experts anticipate further falls.

Lorraine Hudson, of market analysts Mintec, said: "How far basmati prices will drop this time may depend on exports to other Middle Eastern nations, where rice exporters have been quick to capitalise on growing demand.

"However , the mountain of Indian basmati left by the lack of sales into Iran will have an effect on prices in months to come."

Iran's previous import ban, due to plentiful domestic stocks, lasted two years.



World Grain

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