India is considering wheat exports to Iran, a government source said on Friday, 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.
Comments
Comments are closed.