Second Rice Sale Made To Iraq In 22/23 MOU

By Sarah Moran

USA Rice

BAGHDAD, IRAQ – Just prior to the end of 2022, Al Awees from Iraq followed up on their initial purchase of 44,000 tons of U.S. rice with another purchase for the same amount, bringing the sales total for the 2022-23 Memorandum of Understanding (MOU) to 88,000 tons in the past month.

Commencing in June 2021, Al Awees was officially appointed to handle rice tenders for the Iraqi government. Eventual purchase of an additional 112,000 tons will satisfy the 2022-23 MOU total of 200,000 tons.

Iraq, which typically relies on imports for 90 percent of its rice consumption needs, has recently increased its consumption levels and hence its imports. Iraq’s rice imports averaged 1.1 – 1.2 million tons a few years ago but have now surged to nearly 2 million tons. Local production has moderately increased, from about 120,000 tons to 250,000 tons this past year, and domestic consumption increased from 1.3 million tons to 1.7 million tons in 2022.

Iraq operates a public distribution system where the government provides certain essential food products, such as rice, oil, wheat flour, sugar, and milk. Nearly 90 percent of Iraqi households receive ration cards for subsidized food commodities. The amount of rice in these ration cards has increased from 12kg per person annually in 2017 to 33kg per person in 2022.

“As we enter the New Year, we’re thankful for these sales to Iraq and their two-fold success of bolstering the U.S. industry and providing healthy, nutritious U.S. rice to the Iraqi population,” said USA Rice President & CEO Betsy Ward.