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After a nine-month absence, Iraq returned to the market with the purchase of 40,000 tons of American rice, under the USA Rice – Al Awees memorandum of understanding. The memorandum of understanding calls for annual purchases of 200,000 tons of US rice (see USA Rice Daily, July 29, 2021).
Al Awees purchased 120,000 MT following the signing of the MOU last summer and has just finalized the purchase of an additional 40,000 MT which is scheduled for shipment in October. The final 40,000 MT remains pending, but US exporters continue to negotiate with Al Awees over the price of this tonnage. The memorandum of understanding is renewed each year.
“These sales were welcome news as we finish removing the old crop and making way for a new crop,” said USA Rice President and CEO. Betsy neighborhood. “The US rice industry appreciates the strong relationship we have with Al Awees and looks forward to these annual sales.”
Iraq has been a prime market for US rice for decades, but often oscillates between no purchases of US rice and buying up to 150,000 metric tons. The MoU attempts to bring some stability and predictability to the market, both for the US rice industry and for the Iraqi government, which uses rice to provide rations to its citizens.
“We also want to express our gratitude to former U.S. Ambassador to Iraq Matthew Tueller for his support and the continued interest of several members of Congress to help maintain Iraq as a premier export market,” he said. said Ward.