In what would be a huge relief to basmati exporters and growers, the Iran’s Ministry of Health and Medical Education (MHME) has certified Indian rice as safe for human consumption.
ISIRI findings
This comes more than a month after the Institute of Standards and Industrial Research of Iran (ISIRI) – the Islamic republic’s products standards-setting authority – reportedly detected high levels of arsenic, cadmium and lead in rice shipments from India.
ISIRI had apparently tested samples of imported rice being marketed under 13 local brands and found lead levels in these ranging from 0.12 parts per million (ppm) to 2.49 ppm, while the arsenic and cadmium densities were between 0.16 and 0.56 and 0.02 and 0.07, respectively.
The news sent the basmati trade here into a tizzy, even though there was no ban of any sorts imposed on Indian rice imports by Iran. Also, there was no official confirmation that the allegedly contaminated rice was specifically sourced from India.
Advanced tests
But now, in a seeming about-turn, the Food and Drug Laboratory of Iran’s MHME has ruled that there are no problems with the imported rice. The latest finding is based on more advanced “third-level” tests of 67 samples selected from the 13 imported rice brands.
According to a report from Iran’s official new agency, IRNA, the tests revealed the lead, cadmium and arsenic levels in the branded samples to be well within permissive limits. The test results have also been re-confirmed by ISIRI, the report (a translated version of which is available with Business Line) said, quoting Dr Abbas Zare-Nejad, Head of Public Relations at MHME.
Pusa 1121 exports
During the 2008-09 season (October-September), India exported nearly 10 lakh tonnes (lt) of rice to Iran, of which around 8 lt consisted of the ‘Pusa-1121’ improved basmati variety. Iran produces 23-24 lt of rice annually and imports 13-14 lt, the bulk of which is supplied by India.
At an average realisation of $1,350 a tonne, Indian exports of Pusa-1121 to Iran alone are valued at over $1 billion. Iran accounts for roughly 80 per cent of the total market for Pusa-1121, which is much sought after in view of its 30 per cent extra elongation over normal basmati varieties.
Harvesting to start
Among the leading exporters to Iran are KRBL, Kohinoor Foods Ltd, Sunstar Overseas, Best Food International and Bush Foods Overseas Pvt Ltd.
The timing of the latest development is important because harvesting of basmati paddy has just about started in Punjab and Haryana, with arrivals peaking only after Diwali (October 17). Pusa-1121 is now fetching Rs 2,150-2,250 a quintal, compared to Rs 2,800-2,900 at this time last year. Last year, prices touched Rs 3,400-3,500 by end-November.
While the adverse news from Iran has been one reason for lower prices this time, the expectations of a bumper crop have also played a part. Both Punjab and Haryana have seen a doubling of Pusa-1121 acreage, as farmers responded to the high prices received last year.
Going by the total area sown and the condition of the crop, the industry estimates 13-14 lt of Pusa-1121 shipments in the 2009-10 season, including 10 lt to Iran.
Source : Business Line