Indian Rice Exporters Remain Confident of Iran Demand Despite Sanctions Risk

New Delhi, Aug 27 (KNN) Indian rice exporters remain confident that shipments to Iran will continue despite the threat of tighter US sanctions, citing sustained demand for the staple and its importance to Iran's food security.

Rice accounted for nearly two-thirds of India's USD 1.25 billion exports to Iran in the financial year ended March, while Iran purchased about 7Percent of India's USD 11.5 billion global rice exports, according to government data.

Iran bought more than 1 million tonnes of rice from India during the last financial year, up 17Percent from a year earlier. Exporters said demand has continued despite higher prices and trade disruptions caused by the conflict in the region, according to Bloomberg.

Ajay Bhalothia, General Secretary of the All India Rice Exporters Association, said Indian exporters expect the trade to continue, as rice is an essential commodity covered by humanitarian exceptions and Iran has limited alternative suppliers.

He said Indian traders have been using financial channels in countries including the UAE, Germany, China and, more recently, Turkey to settle payments instead of dealing directly with Iranian banks.

Other major Indian exports to Iran include pharmaceuticals, tea, bananas, cereals, bovine meat and chemicals.

“Indian exports to Iran shouldn’t get impacted,” said S.C. Ralhan, President of Federation of Indian Export Organizations. While exports to Iran aren’t substantial, he added that “the government should immediately intervene on humanitarian grounds with some arrangement to help exporters.”

(KNN Bureau)