LT Foods Unfazed by Iran’s Rice Import Ban
We discuss the impact of Iran’s rice import ban on Indian rice exporters with LT Foods’ Joint MD
Iran’s move to ban rice imports will not impact Indian companies. That’s the word coming in from Ashwani Arora, joint managing director of LT Foods. Speaking to BloombergQuint, Arora said that total exports to Iran on an annual basis won’t be impacted by the ban.
Iran, the world’s largest importer of Basmati rice, banned rice imports effective July 22. The ban is intended to support domestic rice farmers, Ali Akbar Mehrfard, deputy agriculture minister, said in letter on the Iran Customs Administration website.
Arora said the import ban is a regular phenomenon during the rice harvest time in Iran.
Edited excepts from the interview.
Iran had lifted the ban on rice imports in November 2015. Indian rice exporters were working towards increasing their Iran exposure post the lifting of the ban. So how will this ban impact rice exports from India to Iran?
This is a regular phenomenon in Iran. When their new crops (harvest season) come, then they ban imports for four months This is not a surprise to the Indian rice industry. Rice industry has tuned themselves to this. In these two months, there will be surplus rice going to Iran to compensate for the ban. Total exports to Iran on annual basis wont be impacted by the ban.
What is LT Foods’ exposure to Iran?
LT Foods does not have much exposure to Iran, have four to five percent of total revenue coming from Iran.
Which are some of the other geographies that are important for LT Foods from the exports perspective and how are they doing?
India, Middle East, Europe, America are the major markets for Basmati rice. Otherwise LT Foods is present in 50 countries. At the moment, currency also has a positive impact on LT Foods. All these four markets are growing at over 10 percent.
What are your current average realizations, and how do you see them moving?
I don’t have numbers right now, but I expect the realizations to grow.
