NEW DELHI: Uncertainty over the use of currency for bilateral trade has put India's basmati rice exports to Iran in doldrums following hesitation over use of the dollar after fresh sanctions levied by the United States on the Islamic Country. According to trade sources, Iranian authorities are hesitating over the use of the dollar for bilateral trade with friendly countries, including India. Since India has already cleared its oil dues in dollars, Iran lacks rupee denominated currencies in its foreign currency reserves which has created uncertainty over India's basmati rice exports to that Country.
Trade sources believe that Iran is looking to use the euro in place of the dollar. But, nothing has been finalised yet. Hence, till the final decision is taken, India's basmati rice exports to Iran would not resume. Shipment for old contracts, however, would continue.
A senior Apeda (Agricultural and Processed Food Products Export Development Authority) official said that the Government of Iran has not set any price for basmati rice import from India.
"The currency issue can be dealt with bilaterally (between buyers and sellers) through use of alternative ones like euro, yen and rupee. So, our request to exporters is not to sell basmati rice at a loss. They should wait till a clear price signal is received from the market," a senior industry official said.
Source: Dailyshippingtimes.com
