News / Asia

India’s Rice Exports to Iran Rise

An Indian farmer harvests rice crop in a field on the outskirts of Jammu, India, October 30, 2012.
An Indian farmer harvests rice crop in a field on the outskirts of Jammu, India, October 30, 2012.
Anjana Pasricha
India’s rice exports to Iran have been rising since Tehran agreed to accept payment in India’s local currency for its oil. India wants to use this money to fund its exports to Iran, but efforts to step up trade between the two countries continue to face several hurdles due to Western sanctions on Tehran over its nuclear program.
   
A delegation from the All India Rice Exporters Association is getting ready to visit Tehran in early April to see how to strengthen business. The visit comes amid a recent surge in exports of rice to Iran. From April to December last year, Iran imported more than $725 million worth of rice - up 20 percent from the previous year.
  
India has been one of Iran’s biggest rice suppliers for many years. But business grew after New Delhi began to pay Tehran for oil partly in its local currency. These rupee resources, which are piling up in an Indian bank, are being used to fund Indian exports to Tehran.
 
Rice traders say the arrangement has ended the uncertainty over payments that arose due to Western sanctions on Iran.
 
"There are some issues still there, but people are aggressive in selling, and you see if the buyer makes money, he is a little more aggressive to sell. The rice prices have gone up in India, and Indian exporters are making good money," said Vijay Setia, who heads the All India Rice Exporters Association.

Rice traders are not the only ones eyeing the Iranian market. Indian pharmaceutical companies are also trying to increase exports to Iran amid a reported shortage of several medicines in that country. Sugar, tea, and iron and steel are some of the other items which India sells to Tehran.
   
However, India’s exports are worth far less than its oil imports from Iran, which amount to about $1 billion a month. New Delhi wants to increase trade with Iran - partly so that the rupees which are accumulating in India for oil payments can be used to finance exports.
 
But a refusal by many insurers to give coverage to shipments to Tehran is posing fresh hurdles.

Rafique Ahmed, president of the Federation of Indian Export Organization, which has been urging Indian companies to step up exports to Iran, says trade with Iran increased by 11 percent last year, but is not growing as much as expected.
   
"Definitely the sanctions are creating a problem because not everybody wants to take a risk of not having insurance and everything. So it is not increasing as much as we wanted it to increase," he said.  
  
There are also fears that India’s oil imports from Iran could face further problems because domestic insurance companies have expressed concerns about giving coverage to refineries which process the oil.
  
New Delhi, which has friendly relations with Iran, is its second biggest customer for oil, although oil imports have dropped by about 20 percent in response to pressure from the United States.

You May Like

For Lebanon-based Refugees, Desperation Fuels Perilous Passage

In a war that has caused an estimated three million people to flee Syria, efforts to make perilous sea journey in search of asylum expected to increase More

South African Brewer Tackles Climate Change

Mega-brewer SAB Miller sent delegates to climate summit in Peru, says it is one of many private companies taking their own steps to fight climate change More

Indonesia Reports Increase in Citizens Joining Islamic State

Officials say more than 350 of its citizens are now in Syria or Iraq to fight with Islamic State - 50 more than last month More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid