India considering exporting wheat to sanction crippled Iran

India is considering wheat exports to Iran, as New Delhi hopes to boost exports to the sanctions-hit nation to help settle part of its oil imports bill through a bilateral mechanism. An Iranian trade delegation will come to India
next week to discuss wheat exports, the source added, without elaborating on the likely payment mechanism for sales to Iran.

Food shipments are not targeted under Western sanctions, but Iranian companies have been cut off from much of the global banking system because of the financial measures against Tehran, making payments difficult and discouraging
traders. Tighter sanctions are targeting Iran’s oil trade and central bank to pressure Tehran to shut down its nuclear programme, which Iran says is for peaceful purposes.

Asked whether the government would export wheat to Iran, the government source told reporters: “That is under consideration.” India, one of Iran’s largest oil clients, aims to cut the trade imbalance which is currently tilted towards
Tehran.

Exports from the South Asian nation accounted for about $2.8 billion versus imports of about $11 billion in 2010/11, according to government data. India earlier this year decided to try to settle 45 per cent of its oil trade with
Tehran in the rupee – which is not globally traded – by settling payment for Indian exporters without the involvement of foreign banks.

Short URL: https://www.newspakistan.pk/?p=22747

Posted by Hamza Jahangir on May 18 2012. Filed under Pakistan, World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry