Rice market in Iran

Earlier Report Observations

Iran's rice market volume grew from 4.7 million tonnes in 2018 to 6.1 million tonnes in 2019, driven primarily by a 42% surge in domestic production to 4.4 million tonnes. During this period, Pakistani rice entered the market as a new import source, while changing consumer preferences towards foreign or semi-polished varieties emerged due to rising prices for local rice. Regulatory efforts intensified, including monitoring exercises of warehouses and rice mills in Mazandaran province to control the market.

Market volume then declined to 5.6 million tonnes in 2020 and fell sharply to 3.9 million tonnes in 2021. This contraction was triggered by the removal of the preferential 28,500-toman exchange rate for rice imports and the accumulation of foreign exchange debts among importers, which severely restricted inbound shipments. Insufficient supply of Pakistani rice and persistent disruptions in the supply chain further pressured the market, leading to a drop in both imports and domestic output.

A recovery followed in 2022, with the market expanding to 5.4 million tonnes. This was supported by a 20% rise in domestic production to 3.6 million tonnes, partly attributed to the introduction of new drought-resistant rice varieties developed through cooperation with China and a national focus on high-yield, water-efficient cultivars. Imports also rebounded strongly to 1.8 million tonnes. However, the market volume retreated again to 4.2 million tonnes in 2023 as imports fell substantially.

Production rice in Iran

In kind, 2017-2020, K t

Iran ranked 20th globally in rice production between 2017 and 2020.

Top producers of rice, 2017-2020

World map of production of rice, 2017-2020

Iran's rice production increased for the second consecutive year. In 2020, the country produced 4 561 K t of rice, marking a modest 3.1% rise from the previous year. Over the 2017-2020 period, production grew by 42.3%, with an average annual growth rate of 12.5%. The lowest production level was recorded in 2018 at 3 106 K t, which also saw the largest decline of 3.1%. In contrast, 2019 experienced the most significant increase, with production jumping by 42.4%.

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

Exports rice from Iran

Exports in kind, K t

The market showed noticeable fluctuations during this period. Export volumes reached their lowest point in 2017 and peaked in 2020, with a fourfold difference between these years. In 2020, rice shipments from Iran abroad amounted to 4 K t, reflecting a sharp 137.0% increase from 2019. The largest decline occurred in 2019, with a drop of 27.0%.

Annual dynamics of product's exports from Iran in kind, 2017-2020, K t

From 2017 to 2020, three key markets—Iraq, Canada, and Turkey—collectively accounted for 56.7% of Iran's total rice exports in volume terms.

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, M $ US

Market behavior was volatile during these years. Exports hit their lowest point in 2017 and peaked in 2020, with a 3.3-fold increase over this period. In 2020, Iran exported 5 M $ US worth of rice, representing a sharp 65.8% gain compared to 2019. The largest decline was recorded in 2019 at 22.2%, while 2018 saw the most significant increase of 154.2%.

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

Between 2017 and 2020, Iraq (31.5% of export value), Canada (17.3% of export value), and Turkey (8.2% of export value) emerged as the primary markets for Iran's rice exports in value terms, together making up 57.0% of total flows.

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

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

Imports rice to Iran

Imports in kind, K t

After rising for two years, Iran's rice imports declined. In 2020, the country imported approximately 1 042 K t of rice, corresponding to a sharp 36.9% drop from the previous year. Over the 2017-2020 period, imports decreased by 19.5%, with an average annual decline of 7.0%. The highest import volume was recorded in 2019 at 1 651 K t, while the largest increase occurred in 2018, with a rise of 24.8%.

Annual dynamics of product's imports to Iran in kind, 2017-2020, K t

From 2017 to 2020, India and Pakistan together accounted for 85.8% of Iran's total rice imports in volume terms, with other countries forming a diverse but less significant portion.

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, M $ US

Following a two-year increase, foreign rice supplies to Iran declined. In 2020, import volume totaled 932 M $ US, which is 45.0% lower year-over-year. Over the 2017-2020 period, imports fell by 23.2%, with an average annual decrease of 8.4%. The maximum value was recorded in 2019 at 1 694 M $ US, while the largest increase occurred in 2018, with a rise of 34.1%.

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

Between 2017 and 2020, India remained the leading supplier of rice to Iran, accounting for 73.2% of total imports in value terms, with the rest distributed across many other countries.

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

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