Paddy rice market in Iran

Earlier Report Observations

From 2018 to 2020, Iran's paddy rice production expanded significantly from 3.1 million tonnes to 4.6 million tonnes. This growth was underpinned by government measures including guaranteed purchases, subsidies to farmers, and the promotion of modern irrigation techniques, which encouraged higher yields. Currency allocation issues that constrained rice imports from 2019 onward increased reliance on domestic supply, further stimulating local production, while state stockpiling purchases in 2020 provided additional demand.

Production dropped sharply to 3.0 million tonnes in 2021 following a subsidy system reform and the removal of preferential exchange rates, which raised cultivation costs and reduced profitability for growers. A partial recovery to 3.6 million tonnes occurred in 2022, even as increased imports of Pakistani and Indian rice exerted downward price pressure; state-led market regulation, including the distribution of rice at approved prices, helped maintain production levels during this period of adjustment.

In 2023, the market volume eased slightly to 3.5 million tonnes, indicating a period of stabilization after the earlier volatility. Throughout the observed years, the market remained heavily influenced by state interventions in procurement, import policies, and price controls.

Production paddy rice in Iran

In kind, 2017-2020, K t

Between 2017 and 2020, Iran ranked as the 20th largest producer of paddy rice globally.

Top producers of paddy rice, 2017-2020

World map of production of paddy rice, 2017-2020

Paddy rice production in Iran grew for the second year in a row. In 2020, Iran produced 4 561 thousand tons of paddy rice, showing a modest 3.1% increase compared to 2019. From 2017 to 2020, production rose by 42.3%, which translates to an annualized growth rate of 12.5%. The lowest production level was recorded in 2018 at 3 106 thousand tons, with the largest decline that year at 3.1%. In contrast, the biggest increase occurred in 2019, with a jump of 42.4%.

Annual dynamics of production in Iran in kind, 2017-2020, K t

Exports paddy rice from Iran

Exports in kind, kg

In 2019, Iran's foreign paddy rice exports reached 49 400 kg, representing a dramatic increase of 123 400.0% compared to the previous year.

Annual dynamics of product's exports from Iran in kind, 2017-2020, kg

From 2017 to 2020, Iraq was nearly the sole destination for Iran's paddy rice exports in kind, accounting for 99.9% of the total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Iran in kind, 2017-2020

Exports in value, $ US

In 2019, paddy rice deliveries from Iran amounted to 19 601 US dollars, marking a steep rise of 34 288.5% over the past year.

Annual dynamics of product's exports from Iran in value, 2017-2020, $ US

During 2017–2020, 99.7% of Iran's paddy rice exports in value terms were directed to Iraq, making this market overwhelmingly dominant.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Iran in value, 2017-2020

Imports paddy rice to Iran

Imports in kind, kg

Annual dynamics of product's imports to Iran in kind, 2017-2020, kg

Between 2017 and 2020, China was the primary and almost exclusive source for paddy rice imports to Iran in kind, representing 100.0% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Iran in kind, 2017-2020

Imports in value, $ US

Annual dynamics of product's imports to Iran in value, 2017-2020, $ US

From 2017 to 2020, paddy rice imports to Iran in value terms were almost entirely linked to China, which accounted for 100.0% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Iran in value, 2017-2020