India may soon be able to export its basmati rice to Iran as the top officials of country has assured that the Iran’s ban was temporary and is soon likely to be lifted and the process of registration of suppliers will continue soon.
A team of Officials from Commerce Ministry went to Iran to discuss upon the Iran- India trade of several products including rice.
The Rice Export after resuming the ban may not be as brisk as it was before ban as Iran still have glut in their domestic market. An Official from Commerce Ministry Said that”We were assured by the Iranian government that they will soon resume the ban as the glut in their domestic market has eased substantially”
Iran will provide a notification to India on lifting curbs on March 31 and will resume the process of pre-registration of Basmati rice suppliers.
Rajen Sundaresan from the All India Rice Exporters Association (AIREA).who was the part of the business delegation that accompanied the Indian officials who visited Iran said that they have to check out what was the cause for the Iran’s ban.
He said that we expect the Iran’s rice import from India to be 3-5 lakh tonnes (lt), as it will not be possible to touch the earlier highs.
In 2014-15, India exported 8 Lt of rice to Iran against its expectation of 10 lt. In 2013-14, India’s export of Basmati to Iran was a whopping 1.4 million tonne.
Sundaresan said that this year the rice export will surely not be huge and also Iran has not clear out the requirement as Iran still has a substantially stock of rice in its domestic markets
Iran has stopped importing the rice from India as there was a huge stock in the country after robust local production and a spill-over in stocks from the previous year.
Iran had stepped up its purchase of all items including rice from India over the last couple of years to get around economic sanctions imposed by Western countries over its alleged nuclear activities.
India and Iran have put in place a Rupee payment mechanism wherein part payment for the oil purchased from Iran by India is deposited in a Rupee account in India’s UCO Bank.
The money is then used to make payments to Indian exporters to Iran thereby avoiding payments in Dollars and through foreign banks.