The issue was discussed during a recent visit of Indian official delegation to Tehran last month.
To supplement domestic production of about 2 million tonnes, Iran imports about 1 million tonnes of rice every year out of which about 7 lakh tonnes is exported from India.
A 20 member trade delegation led by Agricultural and Processed Food Products Export Development Authority (APEDA) visited Iran from January 28-30.
The main purpose of the visit was related to promotion of export of rice since Iran is one of the largest importers of basmati rice from India, the ministry said in a statement.
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The delegation met various departments in the government of Iran including Food and Drug Organisation, Governmental Trading Corporation and Trade Promotion Organisation.
Meetings were also held with Iran Chamber of Commerce and Rice Importers Association.
"The deliberations helped to dispel the negative publicity which appeared in some part of Iran media causing doubts about the health and safety of rice from India," it said.