Iran lifts curbs on rice imports to ease domestic prices

Iran’s Ministry of Agriculture would start processing rice import applications as of August 4.

It said the Iranian government had decided to remove its 4-month ban on rice imports, which coincides with rice harvest season in the country, to help ease domestic prices, according to Press TV. 

Rice is a staple of the Iranians, with many preferring the premium-quality crop grown in the north of the country over varieties imported from India and Pakistan.

However, rice import has been a major item in the ministry's toolbox to regulate the domestic market and to prevent price rises that could directly hit consumers.

Iran had a bumper rice harvest last year amid better government incentives for farmers and agreeable weather conditions. The country produced 2.7 million metric tons of rice in the harvest period that ended last October, up 26% year on year.

Experts said at the time that the government’s commitment to seasonal bans on imports had helped boost domestic yields.

Official figures show the country has cut its rice imports to around $1 billion per year as a result of the seasonal bans.

However, calls have grown in recent weeks for a removal of the ban amid a reported rice shortage that has caused prices of some domestic varieties to reach all-time records of 3.8 million rials ($4.3) per kilogram.

The government announced last month that it will continue to allocate subsidized currency to rice imports, helping allay concerns that failing to do so would lead to a major increase in the prices of the staple grain./mehr