Delayed payments from Iran on the back of the depleting balance in the rupee-rial trade account is likely to severely impact exports of basmati rice and tea to that country this year. Around Rs 2,000 crore, due to basmati rice exporters to Iran, is currently stuck because of a payment crisis, it is learnt.
Since the US imposed sanctions on Iran, India could not engage in dollar-denominated trade with the country. Hence, a rupee-rial trade mechanism was put in place in 2018. However, since there have been no oil imports by India since May 2019 due to the US-mandated sanctions, the accumulations in the rupee-rial account have been depleting drastically, as per a report.
POSTED BY Exim News Service.