Iraq continues to purchase rice from USA
Rice is the largest U.S. agricultural commodity exported to Iraq and is a key component of the regular food allotments provided by the Iraqi government to its citizens.
IRAQ – Iraq continues to purchase rice from the U.S., with sales reaching 220,000 tonnes for 2025; the most recent transaction included 44,000 tonnes of U.S. long grain rice, which is scheduled to ship later this fall, according to USA Rice.
These sales followed delays last season that hindered the country from fulfilling its memorandum of understanding.
Iraq consistently ranks among the top 10 export markets for U.S. rice and is the second-largest market for long-grain milled rice.
However, changes in financing have caused delays in Iraq’s rice purchases for some time. Despite these financial restrictions, the U.S. rice industry has successfully continued sales to this vital market, as noted by USA Rice.
“This sale was much needed for the farm economy, especially with current prices being as low as they are. We are thankful that Iraq has been such a steady and reliable partner, and we look forward to continuing this beneficial relationship,” said USA Rice Chair Keith Glover.
In recent years, Iraq has significantly strengthened its import relationship with the United States, reflecting a strategic move to diversify its sources for essential commodities and advanced equipment.
According to the U.S. Department of Agriculture (USDA), U.S. agricultural exports to Iraq totalled US$264.55 million in 2024, demonstrating a 4% compound annual growth rate over the past decade.
The USDA also reported that in 2024, Iraq imported US$85.5 million worth (131,501 metric tons) of rice from the U.S., marking a 61% increase compared to the ten-year average.
The demand for high-quality U.S. rice remains strong, as Iraq imports nearly 90% of its rice needs.
The U.S. International Trade Administration (ITA) notes that while the Ministry of Trade sometimes sources lower-quality rice from other countries, private sector demand for U.S. rice stays robust, highlighting the significance of this trade relationship.
Iraq’s heavy reliance on U.S. imports, particularly rice, reflects broader structural issues within its governance and economic policies.
Despite possessing substantial agricultural potential, the country remains heavily dependent on food imports due to decades of corruption, resource mismanagement, and inefficient budget allocation under the federal government in Baghdad.
Trade analysts indicate that instead of investing in domestic agricultural production, successive Iraqi administrations have favoured short-term solutions, which leaves the country vulnerable to fluctuations in the external market.
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