Iran’s spring rice imports fall by more than half as currency payments remain frozen

Import volumes fall as financing capacity erodes

Iran’s rice imports declined by more than 50% this spring compared with the same period last year, according to customs figures cited by Karim Akhavan-Akbari, chairman of the Iranian Rice Importers Association. He said the contraction reflected the declining financial capacity of importing companies rather than weaker demand.

Speaking at a specialist meeting on the private sector’s role in food security, Akhavan-Akbari said domestic farms supply approximately 50-60% of Iran’s rice requirement. The remaining demand depends on regular imports, making the financial health of importers an important part of the country’s food supply system. Rice is considered Iran’s second strategic food product after wheat and is consumed directly by households.

Akhavan-Akbari warned that a significant number of companies can no longer operate at full capacity. Some have been pushed close to bankruptcy, while delays in settling payments have damaged their standing with international suppliers. Foreign sellers are now prepared to dispatch new cargoes only against full cash payment, further tightening procurement conditions.

Rice companies await about $1 billion

According to Donya-e-Eqtesad, importers of essential goods have approximately €4 billion in outstanding foreign-currency claims. The rice industry accounts for about $1 billion of that total, and the liabilities have remained unsettled for nearly 17 months.

The rice covered by these claims was imported, cleared through customs and recorded in Iran’s Comprehensive Trade System and other official systems. The cargoes were distributed under regulatory supervision and have already been consumed by households. Some shipments were also transferred to the Government Trading Corporation of Iran under formal contracts that included commitments to provide foreign currency sooner, but the associated claims remain unpaid.

Akhavan-Akbari said the amounts were not based solely on declarations from private companies. Individual cases have been reviewed, audited and verified by the Ministry of Agriculture Jihad, customs authorities, the Ministry of Economic Affairs and Finance and other responsible agencies. He argued that introducing additional procedures would only extend the payment delay.

Importers seek a binding payment timetable

Iran’s president has ordered the government to pay 50% of private-sector claims in the first stage and settle the remainder in subsequent stages, according to Akhavan-Akbari. Importers are now asking when that instruction will be implemented after receiving repeated payment assurances over the past 17 months.

The association is seeking a clear timetable rather than commitments beyond those already announced. Payment would allow companies to rebuild working capital, meet obligations to overseas sellers and restore the commercial credit needed to purchase rice without full advance settlement.

Importers say they maintained supplies during normal periods as well as during war-related restrictions and increases in transport and trading risks. However, the current financing constraint means that existing stocks cannot by themselves guarantee continued availability. Warehoused rice will eventually be consumed, while the import chain requires continuing access to currency and supplier credit.

With domestic production meeting no more than 60% of demand, a prolonged reduction in imports could affect market availability and household food costs. The immediate outlook now depends on whether the ordered first payment is executed and whether it arrives soon enough to restore importers’ purchasing power and relationships with foreign suppliers.