Indian Rice Exports to Iran in Jeopardy.

While the people of India are busy accusing the government of exporting rice that should be used to feed the country, rice exporters are battling dropping prices and dwindling demand.

The biggest market for Indian rice exports is Iran. But, the international sanctions make payment difficult and have been hindering the rice exports, reports Bloomberg.

India became a top trader of rice after a ban on exports was lifted in September, 2011.

Though the Indian aromatic rice, basmati, had a good run in the month of June, a 25 percent decline in the price is causing some worry. According to Bloomberg, while Indian rice exporters are hoping that Iran will remain a big importer of Indian aromatic rice, some companies, like KRBL Pvt. Ltd. and LT Foods, have already begun looking for new markets.

Rice exporters will be catering to rising demands from both the Indian population and the domestic populace in the African countries.

But, Iran may not feel the drop in rice exports too much. A report in Prensa Latina says that Iran will begin importing 14,000 tonnes of rice from Argentina. The South American country had stopped exporting rice to Iran two decades ago. This will be increased in the second shipment to 16,000 tons, Prensa Latina said.


Source : foodworldnews.com