Speaking to ILNA, Keshavarz pointed to the latest development in the rice market and said that the general view of the rice market is repeated every year and some part of people’s demand of rice is provided by the domestic product and the other part is provided through imports and choosing the type of the rice depends on the purchasing power of people.

He noted that the fall in the purchasing power of the people has forced them to turn to foreign rice, adding that the private sector has imported about 1.15m tons of rice in 10 months and this amount of rice has been consumed and now the country needs to supply rice for the Nowruz (New Year) holidays and holy month of Ramadhan, and the country needs at least 300,000 tons more of rice to meet the demands.

Keshavarz noted that the domestic rice production is estimated at around 2.4m tons this year and the price of the domestic rice is facing upward trend and it has made people not to show any willing to buy Iranian rice and they are unable to use this product on their tables.

Reacting to the reports that the government has lifted ban on imports of rice, he said that unfortunately this is not true and the ministry has not lifted the ban on imports of the rice.

Meanwhile Head of Association of Rice Sellers if Babol said that because of fall in the purchasing power, even people in north of the country have turned to the foreign rice and they now prefer using good quality Indian and Pakistan rice to Iranian one.

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Speaking to ILNA, Mr. Akhavan Akbari said that importers have been told to stop imports of rice from India because of the trade balance with India, adding that due to return of Iran’s kiwi and apple from India, the trade balance between the two states turned negative and therefore rice importers were told to stop imports. He went on to say that it is not logical to stop import of a basic commodity for balancing the trade as elimination of kiwi from the household baskets does not pressurize the people’s table but elimination of rice affects the people’s table.

He reiterated that without any doubt the approval of the agriculture ministry will create chaos in the rice market and experience has shown us that always during months of Ramadhan and Muharram as well as Nowruz (New Year) holidays domestic rice consumption soars.

He noted that by the yearend two consumption peaks will be coincided with each other, stipulating that some 250,000 tons of rice should be imported by the yearend in order that the market does not feel any shortage and shortage of foreign rice will impact the domestic rice market and without any doubt the price of Iranian rice will increase.

Akbavan said that the price of foreign rice is almost one-thirds of domestic rice, adding that six domiciles of the society are main consumers of foreign rice and here the question is raised why foreign rice is eliminated from the people’s table just on the eve of Nowruz (New Year) holidays and month of Ramadhan.

He stated that the country needs annual import of 1.5m tons of rice and so far 1.274m tons have been imported and 250,000 tons more should be imported by the yearend and if it does not happen, we will see soaring of Iranian and foreign rice price in the market.

Akhavan reiterated that the decision for halt in imports of rice will destroy the tranquility of the market and will lead to the tension in the market and the prices will soar in March, admitting that since last week, the price of Iranian rice has increased 5,000 tomans per kilo.

He admitted that the fluctuation in the forex price affects the prices of goods and Iranian farmers prefer not to sell their rice because they know that there will be no imports and they can sell their products with higher prices.

On possibility of replacing Indian rice with rice from other countries like Thailand, he said that India accounts for 60% of Iran’s foreign rice market and the country cannot find any replacement in short time because due to sanctions, traders do business based on the credit and they are unable to find a replacement for India in short time because it takes at least 6 months to replace another country, by the way Iranians have gotten used to Indian rice and they may not welcome rice from other countries.

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Speaking to ILNA, Hassan Taghizadeh said that some traders from the semi-private sector has exported some 3 containers of high quality rice of north of Iran to Russia in order to provoke the domestic market but this also could not help the domestic market to come out of current recession.

He noted that currently recession dominates the rice market in Iran, adding that the price of rice increased illogically last year and the prices should not have gone up this way and therefore the demands for Iranian rice decreased.

Taghizadeh admitted that rice planters do not like to sell their products to the rural cooperative organization because they are not certain over getting their money back on due time. He also said that the rice prices this year have increased around 3,000 tomans per kilo, adding that although good quality packed rice is sold for around 90,000 tomans per kilo, there are few people to buy.

He went on to say that because of the sanctions, even chain stores do not like to buy the rice and they just buy for a limited amount to meet the demands of their customers and they refrain from storing and it does not look the condition to get better in the upcoming days.

Taghizadeh reiterated that the amount of rice purchase by the people has become one-tenths of last year because of the decline in the purchasing power.

He acknowledged that most of chain stores sell foreign rice because it price is lower than Iranians despite a rice in the price of foreign rice this year.

He went on to say that the rice planters have increased the price of their rice to 100,000 tomans per kilo and for this reason most store chains are unwilling to buy and sell Iranian rice because of its high prices.

Taghizadeh went on to say that even the news of exports to Russia did not help the domestic rice market to come out of the recession because people are losing their purchasing power and they turn to the rice with lower prices and foreign rice will become their first choice just because of the price and not for quality.

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The Ministry of Agriculture has even been boasting about the cultivation of this highly water-intensive crop.

Growing rice in lands other than those bordering the Caspian Sea is like shooting oneself in the foot.

The cultivation of rice, which started more than 20 years ago, has dried up rivers and led to the depletion of underground waters in some places. To compensate for water shortage, farmers are digging deeper and deeper wells to irrigate paddy fields.

The massive consumption of surface waters to irrigate paddy fields or other water-intensive crops like onion or watermelon has even disrupted the ecosystem in certain areas.

However, officials, especially those in the ministries of agriculture and energy, are either ignorant of the short-term and long-term consequences of this move or they are purely careless.

It is also possible that agriculture ministers want to take pride that during their management of the ministry the production of rice increased in the country.

Iran is an arid and semi-arid country, and during history Iranians had learned how to manage water resources. But now that Iran is seeing less precipitation and more droughts due to climate change farmers are being allowed to grow crops that need lots of water.

The official IRNA news agency published a series of photos on September 12, 2020, showing that farmers cultivate rice in the Qasr-e Qand region of Sistan-Baluchestan, which is famous as a desert province. IRNA said rice is cultivated twice a year in the region.

Even rice cultivation in northern provinces of Iran must be regulated. Mohsen Fallah Niazi, a native of Mazandaran province, says some farmers cultivate rice two times a year in Mazandaran despite the fact that underground waters are going down more each year.

The price of rice in comparison to other crops in the market is so enticing that it is very difficult to convince farmers to turn to other alternative crops. It is so profitable that some farmers dig wells without receiving a permit from the Ministry of Energy.

However, it seems that officials have no plans to ban the cultivation of rice and other water-intensive crops. Probably, it is customary that officials don’t try to resolve an evolving problem before it turns into a crisis like what has happened in Khuzestan province.

Now, in addition to droughts and water transfer, part of the water shortage in Khuzestan province is due to the fact that farmers who live along the rivers drain waters that run into Khuzestan. These farmers who mostly live in the mountainous Zagros regions use these waters to irrigate paddy fields or other water-intensive crops.

The excessive extraction of underground water resources and rivers may continue until a time that officials find themselves unable to even provide potable water for citizens in certain areas.

Whatever difficult it may be, it is urgent to convince farmers to stop growing rice. A more delay to stop its cultivation, farmers will even lose the chance to grow crops that their ancestors had been doing for centuries.

To do this, first, it is necessary to educate the farmers about the dire consequences of this model of farming and then offer profitable alternative crops. Even if this approach fails to convince farmers to turn to alternative crops, the responsible bodies should introduce penalties.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Head of the Iranian Rice Importers Association Mr. Masih Keshavarz says Iran’s rice imports have declined by 50 percent as the country may add Thailand and South America to the list of countries exporting rice to the country.

Speaking to ILNA, Keshavarz said that quality of Indian and Pakistani rice is high and if the rice is to be imported based on the NIMA forex rate, their price will be multiplied, adding that the country should think about new markets for imports for importing the rice with lower price.

He then talked about the latest condition of rice imports in the country, saying that unfortunately before the government banned rice import, the imports had almost been halted and according to the statistics, Iran’s rice imports have declined by 50 percent comparing to the preceding year. He added that some 550,000 tons of rice has been imported into the country in the first half of the year.

Keshavarz added that ministry of industry, mine and trade had set a target for the current year and according to the target, it had been decided some 200,000 tons of rice to be imported per month and its total in five months should have been one million tons but currently the country has fallen behind by 50 percent regarding the set target.

He then noted that this decline would lead to the rise in the price of the rice in the market and would harm the households.

He reiterated that devaluation of national currency against the foreign currencies has direct impact on the price of the rice, and since the price of dollar has increased in the NIMA system, the final cost of imported rice is around 25,000 tomans per kilo.

Keshavarz went on to say that all statistics and figures show that the country is 50 percent behind the schedule and the country has imported some 550,000 tons of rice in the first half of the year while its need is 1.5m tons.

He then pointed to the problem in the payment for imports of rice, adding for this reason some countries do not sell us their products.

He went on to say that if the domestic rice production can retain its share of the market and its price does not rise, the country can put behind this tough time. He reiterated that if rice price increases like other commodities and puts the public under pressure, the association will be forced to have an eye on imports and the government should cooperate with the private sector in order to import rice with cheap price from countries like Thailand and South American states.

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IRAN NEWS ECONOMIC DESK

TEHRAN – The Caretaker of agriculture ministry believes imports of rice and sugar will ruin domestic production and called for supporting domestic production.

In meeting with agro sector activists in Tehran, Abbas Keshavarz pointed to the current sanctions and the condition of national economy, adding that in this condition, the necessity for cooperation between producers and the government ministries is strongly felt.

He added that fortunately the price of raw material in the agriculture sector has not increased and the country has enough reserves.

He admitted that during the sanctions era, the number of misbehaviors increases and all should be careful not to stand against one another because of sanctions.

He reiterated all should support domestic production and all imports should be based on the NIMA system dollar rate and subsidized 4200-toman U.S. dollar should be earmarked for imports of the intermediary goods.

He reiterated that if the ministry lets sugar and rice be imported with the government forex rate of 4200 tomans per dollar, domestic production would ruin.

He admitted that agriculture sector needs modern technology to enhance production but all should consider that the country is in an especial condition and it challenges with certain problems and all should get along with the current condition.

He reiterated that exporters should look for new markets in order to skirt the U.S. sanctions.

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The tender closes on October 9.

The sella grade rice of type 1121 is sought in two 15,000 ton consignments for shipment in containers between October 15 to November 15.

The post Iran issues tender to buy 30,000 tons rice from India appeared first on Iran News Daily.

The waiver was announced to Industry, Mining and Trade Minister Mohammad Shariatmadari in a letter by Agriculture Minister Mahmoud Hojjati on January 14.

On December 31, 2017, the Islamic Republic of Iran Customs Administration (IRICA) banned any registration for imports of rice until further notice, IRNA reported at the time.

“Regarding the mass imports of rice, more than one million tons, during the first five months of the current Iranian calendar year (March 21- August 22, 2017), which surpassed domestic consumption and pulled market into recession, no further order registration should be allowed,” Hojjati wrote to Shariatmadari on December 20.

Accordingly, IRICA announced that registration for imports of rice is forbidden until further notice due to the order of agriculture minister and exports and imports regulations of Iran Trade Promotion organization (TPO).

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