Basmati rice prices firm up as Iran lifts ban

NEW DELHI: Basmati rice prices are firming up because of demand from Iran that has lifted its five-month-old ban on imports of the grain from India two days ago.

Iran is one of the largest importers of Indian basmati rice in recent years, and the prospect of high sales has raised prices in the Karnal mandi by Rs 200-300 per quintal for the popular 1121 basmati (sela) rice.

India exported 4.05 million tonnes in 2015-16, out of which 1 million tonnes was to Iran. This year, the industry expects exports could fall to 3.8 million tonnes, due to less exports to Iran.

“Basmati rice prices have started increasing as Iran has allowed imports from India. A formal notification is awaited, but exporters and companies have started getting queries from Iran and some have even started signing contracts,“ said Angshu Mallick, COO at Adani Wilmar.