India mulls barter system to satisfy Iran’s basmati appetite amid sanctions

India mulls barter system to satisfy Iran’s basmati appetite amid sanctions
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New Delhi, Nov 11: The payment system with Iran is being relaxed further for basmati rice exports. This comes after the US allowed India to continue importing crude oil from Iran and develop the Chabahar port.
Now, India is finalising guidelines for exporting basmati rice to its largest importer — Iran — on a rupee payment basis.
The move has come as a positive development for exporters who are paying a higher price for procuring basmati.
Last year, India exported $4.17 billion worth of basmati rice and Iran was the largest buyer of rice (at $905 million). In the first five months of 2018-19, exports have already crossed $2 billion and Iran continuous to be the largest buyer for India followed by Saudi Arabia.
When the US announced sanctions against Iran, farmers had already increased area under basmati but exporters were cautious. However, the recent exemption for Iran followed by easing of the payment crisis has lifted the sentiments of basmati exporters.
“Higher paddy price this season has put some pressure on the retail price, especially if you consider that there is recession in the global market. However, there has been some stabilisation now and we expect a good basmati export cycle this year,” Kohinoor Foods joint managing director Gurnam Arora said.