Iraq Resumes Purchases of U.S. Rice

Tuesday, August 6, 2024

USA Rice Daily

Iraq Resumes Purchases of U.S. Rice

Aug 06, 2024

BAGHDAD, IRAQ - After months of uncertainty following U.S. government-imposed financial restrictions, Iraq again is purchasing rice from the United States. Over the weekend, ADM Rice sold a vessel of U.S. rice which will be loaded and sail to Iraq early this fall.

"This news couldn't have come at a better time, as harvest gets into full-swing in the mid-South, a sale of U.S. rice to Iraq is welcomed all around," said Keith Glover, Arkansas rice miller and freshly minted chair of USA Rice. "We want to thank all those that assisted in restoring this market for us, including many in Congress who took an interest in finding a solution."

News of this sale comes after Senators John Boozman (R-AR), Bill Cassidy (R-LA) and Cindy Hyde-Smith (R-MS) met with Iraq's Ambassador to the United States Nazar Al Khirullah last week to inquire about progress with the resumption of U.S. rice purchases for Iraq's food basket items. The Senators and eight other Members of Congress sent a letter to the U.S. Treasury Department earlier in the year encouraging a quick resolution of financing issues that prevented regular sales from occurring (see USA Rice Daily, April 16, 2024).

Over the past several months, USA Rice has led regular interagency meetings in partnership with officials from the U.S. Department of Agriculture, U.S. Department of State, the U.S. Treasury Department, and the Office of the U.S. Trade Representative to help find banking solutions to facilitate new business.

"While we anticipate some medium to long-term challenges on the banking side for Iraq, this promises to be a positive step in the right direction at a critical time for our industry. We're going to stay engaged with the skilled team of interagency players to ensure that we can fulfill the 2024-25 MOU commitments as well as those in future years," said USA Rice President & CEO Peter Bachmann. "We appreciate the efforts of many in our government, especially Senators Boozman, Cassidy, Cotton, and Hyde-Smith, as well as Congressman Rick Crawford, all of whom have continued to press this issue on our behalf after the initial letter was sent."

Iraq was the fourth largest export market for U.S. rice in 2023 and the second largest export market for long grain milled rice.