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Tuesday, April 30, 2024 7:34 GMT
Fresh sanctions slapped by the US on Iran on Friday are likely to have an adverse impact on India’s agricultural exports. "There is uncertainty over payments as the letter of credit issued by Iranian entities earlier against imports from India can’t be honored after the latest round of sanctions,” said an official with a Pune-based sugar trading company. The US on Friday imposed penalties on Iran to target multiple sectors of the Islamic Republic’s economy–including construction, manufacturing, textiles and mining."We have learnt that a shipment of 30,000 tons basmati rice destined to reach Iran is held up at Kandla Port due to uncertainties emanating from the sanctions,” said Vijay Girase, proprietor of Al Sucrose Corp, on the sidelines of All India Sugar Trade Association Sugar Conclave 2020.Girase, who is also an adviser to Ratnagiri-based JSW Port on the western coast, added that two shipments of 40,000 tons each of sugar, already shipped to Iran, are also waiting to be unloaded amid lack of clarity on how the deal could be settled financially.Iran is a major destination for a number of farm commodities such as tea, sugar, basmati and non-basmati rice among others from India. The West Asian country accounted for around 30% of India’s total sugar exports in 2018-19 (Oct-Sep), pegged around 3.8 mn tn. The country is also a leading buyer of Indian basmati rice, with purchases totaling 1.4 mn tons in 2018-19 (Apr-Mar). - Kayhan