Iranian Rice Market: Strategic Import Policies and Price Adjustments Announced
In a significant development for Iran’s food security landscape, new measures and price structures for the national rice market have been announced. This follows recent guidance from the country’s leadership on the necessity of providing essential goods at suitable times and prices and avoiding monopolies in imports.
Majidreza Khaki, Secretary of the Iranian Rice Importers Association, stated that these important directives can be achieved through principled policymaking, resolving currency issues, and fostering healthy competition among importers—a matter expected to be a top priority for decision-makers.
A Balanced Supply of Domestic and Imported Rice
The current market supply is a combination of domestic and imported rice. While a significant portion of the country’s needs is met by local production, reliance on imports has become increasingly unavoidable due to a reduction in cultivated area and water resource limitations.
Khaki reported that nearly 700,000 tons of rice have been imported and cleared since the start of the year, approximately 70% of which was Indian rice. This variety has not created issues in terms of availability or price. However, for Pakistani rice, which is similar to the Iranian variety, prices in the market are being offered above the approved rate due to some non-expert decisions.
Addressing Market Challenges and Currency Allocation
A key challenge noted is resistance in the supply chain of Iranian rice at the initial stages, which requires serious monitoring and intervention. This is one reason the expected decrease in the price of domestic Iranian rice has not been realized.
Although the foreign rice market is not currently facing a significant shortage, a vital part of this supply has been secured solely based on the credit of private sector activists. Delays in the allocation and provision of foreign currency could seriously disrupt the import process in the coming months. Immediate action on paying import currency is described as an unavoidable necessity.
Current Market Prices and Future Projections
Current market prices see quality Iranian rice selling between 250,000 to 300,000 tomans, while some varieties of Pakistani rice are offered around 100,000 tomans.
Khaki emphasized that if currency is allocated on time, unnecessary restrictions are lifted, and the distribution process becomes more transparent, prices can move toward equilibrium. The country’s annual need is estimated at approximately 3.2 million tons. With domestic production near 1.8 million tons, at least 1.4 million tons must be supplied through imports. While half of this has been cleared, the other half must enter the country in the coming months.
A Call for Policy Reform and Competitive Markets
The Association had previously proposed the removal of preferential currency allocation, a policy the government continues to insist upon despite a nine-month delay in its payment. Khaki argued that a sustainable solution is not to compel importers, but to eliminate preferential currency and create a healthy, competitive environment for imports—a path that would ultimately strengthen supply and benefit the consumer.
He concluded that balancing the market requires several key actions: timely currency allocation, policy reform, diversifying imported varieties to match consumer tastes in different regions, and continuous monitoring of the Iranian rice supply chain. Only with such an approach, he stated, can the country’s food security be maintained and market stability sustained.