Miss. Lawmakers Ask State Dept. to Promote U.S. Rice with Iraq

Delegation Suggests Iraq Could Benefit from Competitively-Priced U.S. Rice

January 23, 2015

WASHINGTON – Members of the Mississippi congressional delegation today asked Secretary of State John Kerry to help encourage Iraq to purchase more rice produced by U.S. farmers, including those in Mississippi.

U.S. Senators Roger Wicker, R-Miss., and Thad Cochran, R-Miss., with U.S. Representatives Bennie G. Thompson, D-Miss., Gregg Harper, R-Miss., Alan Nunnelee, R-Miss., and Steven Palazzo, R-Miss., have signed a letter to Kerry that asks for diplomatic assistance to improve trade relations with the Iraqi Grain Board (IGB, or Board).  The IGB is expected to soon begin accepting bids on a new tender to buy 30,000 metric tons of rice.

The IGB in recent years has decreased significantly purchases of rice produced in the United States, opting instead for higher-priced rice from other nations.

“Rice production across the country and in Mississippi is critical to our economy,” Wicker said.  “The State Department has a responsibility to ensure our farmers are not shut out of important markets for their products.  I urge the Administration to engage with the Iraqi government to help reopen its doors to high-quality, affordable American-made rice.”

“It is our hope that the State Department will be able to help convince Iraqi officials that buying rice grown in Mississippi and other states is an economical choice for their people and for their bottom line,” said Cochran, a member of the Senate Agriculture Committee.

“Rice grown in the Mississippi Delta should be given the same consideration on the world market as rice grown in other countries.  I urge the U.S. Department of State to advocate for fairness on behalf of American rice producers,” said Thompson.

“The U.S. rice industry can compete with anybody, so long as they are given a fair shake. It is my hope that the IGB takes a hard look at the U.S. rice industry’s competitive proposal,” Harper said.

The letter, which was spearheaded by Cochran and signed by 36 Senate and House members, asserts that the IGB has not indicated that American rice is deficient in quality, grade or price.

“While American exporters have continued to offer competitive bids, the Board has lately chosen higher-priced non-American bids,” the lawmakers wrote.

“We recognize Iraq’s prerogative to make these types of decisions, but it serves no purpose to discriminate against competitively-priced U.S. rice in favor of rice produced elsewhere.  As an example, on November 6, 2014, the Iraqi Grain Board announced its intent to purchase 170,000 metric tons (mt) of rice.  The IGB purchased 80,000 mt from Thailand, 60,000 from Uruguay, and 30,000 from Brazil.  No rice was purchased from the United States, despite offers of U.S. rice that were of similar quality but nearly $24 per mt below the prices from competitors from Argentina, Brazil and Uruguay.  Iraqi authorities have provided no explanation for this type of decision,” the letter stated.

Rice production in the United States generates approximately $34 billion in economic activity annually, creating thousands of jobs in rural and underserved areas.  Mississippi rice growers produced 13.6 million hundredweight in 2014, with a production value of $174 million-- $29.0 million more than 2013 levels.

“Roughly half of U.S. production is exported making strong export markets critical to the U.S. rice industry’s success,” the lawmakers wrote.  “We would greatly appreciate your assistance in ensuring that U.S. rice receives fair consideration.”

In addition to Wicker and Cochran, the letter was signed by Senators Roy Blunt (R-Mo.), John Boozman (R-Ark.), Barbara Boxer (D-Calif.), Bill Cassidy (R-La.), Tom Cotton (R-Ark.), Dianne Feinstein (D-Calif.), Johnny Isakson (R-Ga.), Claire McCaskill (D-Mo.), Jerry Moran (R-Kan.), David Purdue (R-Ga.) and David Vitter (R-La.).

In addition to the Mississippi House members, other Representatives signing the letter include Ralph Abraham (R-La.), Brian Babin (R-Texas), Charles Boustany (R-La.), Mike Conaway (R-Texas), Rick Crawford (R-Ark.), Blake Farenthold (R-Texas), John Fleming (R-La.), Vicky Hartzler (R-Mo.), Doug LaMalfa (R-Calif.), Blaine Luetkemeyer (R-Mo.), Randy Neugebauer (R-Texas), Ted Poe (R-Texas), Austin Scott (R-Ga.), Jason Smith (R-Mo.), Mike Thompson (D-Calif.), Mac Thornberry (R-Texas), David Valadao (R-Calif.), Randy Weber (R-Texas) and Bruce Westerman (R-Ark.).