New Delhi, Aug 7 (KNN) Export proceeds against exports to Iran realized in Indian rupees are permitted to avail exports benefits/ incentives under the Foreign Trade Policy, 2009-14, at par with export proceeds realized in freely convertible currency, Directorate General of Foreign Trade (DGFT) has said.

In a notification, DGFT said, “The word ‘specific’ has been deleted from Para 2.40A of Foreign Trade Policy, 2009-2014.”

In March 2012, DGFT had issued a notification saying, “Export proceeds against specific exports to Iran realized in Indian rupees are permitted to avail exports benefits/ incentives under the Foreign Trade Policy, 2009-14, at par with export proceeds realized in freely convertible currency.”

As a result, “In respect of exports to Iran, export proceeds realized even in Indian rupees will be eligible to avail export benefits and incentives,” DGFT said in its notification in 2012.

India is a major importer of Iranian oil. India primarily exports rice, cereals, pharmaceutical products, machine tools, automobile parts and steel to Tehran.

India exported 25 million kg of orthodox tea to Iran in FY14. For basmati rice exporters too, business with Iran does not seem to be bright this time. Iran is a major buyer of basmati rice and in FY14 the West Asian nation had imported 14 lakh tonne basmati rice. India's total exports of basmati in FY14 were 38.7 lakh tonne.  (KNN/SD)