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

India PM Modi's party distances itself from religious conversions

BJP under fire for being slow to rein in hardline affiliate groups allegedly trying to promote a Hindu-dominant agenda by luring Muslims and Christians to convert to Hinduism More

Anti-Whaling Group Found in Contempt of Court

Radical environmentalists who threw acid and smoke bombs at Japanese whalers in the waters off Antarctica continue their campaign to disrupt Japan's annual whale hunt More

UN's Ban Urges End to Discrimination Against Ebola Workers

Ban was speaking in Guinea on the second day of a whistle-stop tour aimed at thanking healthcare workers of the countries at the heart of the epidemic 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.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
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.

All About America

AppleAndroid