The discussion for the proposal held during the visit of Commerce Secretary, Rajeev Kher to Tehran for the first meeting of the Joint working group (JWG) of India and Iran.
“Iran is very keen to increase its global trade shares and believes India to be the major player in achieving its goal”, said Kher.
Iran has asked India to negotiate on the trade proposal. Mr. Kher said that India will take the proposal seriously and will soon respond after taking a mandate from government.
Issues like high import duty, rigid quality standards and declining import of commodities by Iran were also raised by India at the meeting.
Mr. Kher said that India discussed all the issues related to the Basmati rice export to Iran and Iran said that they have adopted Codex plus standard (Codex is an international standard for food trade for safety, quality of products.) for the import and all the suppliers have to adopt it. He said that India will see how we can do that.
However Iran has assured that it will increase the basmati rice import from India as New Delhi is chosen as trade centre for Basmati rice trade between two nations.
India has been affected since the Iran has banned rice import and India’s rice export has been declined from $1.4billion to $600 billion annually.
Iran is the major buyer of Indian basmati rice export accounting 60-65% of total basmati rice exports from India. Basmati rice was India’s second largest export commodity after buffalo meat to Iran.