IRAN STOP BUYING BASMATI RICE FROM INDIA

India is the largest Basmati rice producing country in the world. In India, basmati rice is mainly cultivated in Jammu and Kashmir, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand and West Uttar Pradesh. India is the largest Basmati rice exporter in the world tread. India's basmati rice is in high demand in world trade due to large quantities of basmati rice exported from India. Iran is one of the largest importer of India’s basmati rice. Iran imports about 1.5 million kg of basmati rice from India every year. Iran also imports tea and others agriculture products. Currently Iran is reducing its Basmati rice imports from India due to US sanction. India used to import unrefined oil from Iran until 2019. These imports and exports between India and Iran were in Indian currency. India used to buy unrefined oil from Iran in exchange of Indian currency. Iran used to import basmati rice, tea and other goods from India in exchange for that Indian currency. But in may 2019 , due to US sanctions on Iran ,India stopped importing unrefined oil from Iran. As a result, the importing of Indian currency to Iran stopped. Iran is importing goods using their hoarded Indian currency. This resulted in the gradual depletion of Indian currency reserves with Iran. So forced Iran started importing rice form countries like Pakistan, Turkey and Thailand.
Impact on India: India is the largest exporter of basmati rice in world trade. Due to this, India’s basmati rice is also in high demand in world trade.20% of India’s total basmati rice exports go to Iran. Iran has reduced its basmati rice imports from India following the US sanctions in May 2019. According to official fell by 20% to 40 lakh tonnes in 2021 and 26% down to 834,458 tonnes in 2022. According to some traders, this is due to the decrease in Indian currency reserves with Iran. Many traders think that America is responsible for this, because India stopped importing unrefined oil from Iran due to American pressure. As a result, India lost one of the largest importers country of basmati rice. Which has the direct impact on the price of basmati rice, tea and some other products in India.
Conclusion: India currently imports large quantities of unrefined oil from Russia. India also Imports unrefined oil from Saudi Arabia and Iraq. America imposed sanctions on Russia after the war between Ukraine and Russia. India continues to import oil with Russia despite US sanctions, so Iran has offered to re-import unrefined oil. If India imports oil from Iran again, Iran will also be able to import goods from India again. However, the Indian government has not yet responded to this proposal.

Comments

Post a Comment

Popular posts from this blog

India has decided to allow onion exports to Bangladesh and five other countries

As reported by a news media recently, India has decided to allow onion exports to Bangladesh and five other countries through government-to-government route on the recommendation of its Ministry of External Affairs. India is the second largest onion exporter in the world. But in December 2023, the government of India imposed a ban on onion shipments to control rising onion prices and ensure adequate availability in the market and extended it till March this year due to the upcoming national elections. India initially imposed a 40 percent tariff on onions to discourage its exports but when that move did not yield the desired results, it imposed a ban. A person familiar with the matter said that while no decision has been taken to lift the ban on onion exports outright, limited quantities of onion exports have been allowed for bilateral purposes. In addition to Bangladesh, five countries, including Nepal, Bhutan, Bahrain and Mauritius, said exports have been allowed. The Bangladesh gover...
Read more

Indonesia's state procurement agency BULOG has issued an international tender to buy about 300,000 metric tons of rice.

Indonesia's state procurement agency BULOG has issued an international tender to buy about 300,000 metric tons of rice, European traders said last Tuesday. International tenders are asking for 5% broken grade white rice. It should be available from the 2023/2024 crop year and milled no more than six months earlier. Tuesday, February 27, is the last date for registration to participate in the tender for these trading houses. The Indonesian government has allocated an additional rice import quota of 1.6 million metric tons for 2024. The latest import quota, which was above the previously approved 2 million tonnes for 2024, comes amid expectations that the country's January-March rice harvest will be lower than last year due to normal rainfall in Java - the country's main rice-growing region. A severe drought in Southeast Asia's most populous nation has reduced production of staple foods, driving up crop prices. As a result, the price of imports has to be increased. In suc...
Read more

Exports of leather goods from India will decline by 13-15 percent in the current fiscal

Chairman of the Indian Finished Leather Manufacturers and Exporters Association, K.R. Vijayan said exports of leather goods from India will decline by 13-15 per cent in the fiscal year 2023-24. But with strong winter demand for leather products in Europe, we expect a strong rebound of around 20 per cent in FY25 on account of new orders from there. Exports of finished leather were $4.87 billion in 2021-22, increasing to $5.26 billion in 2022-23, while exports in the current fiscal year 2023-24 till October were $2.81 billion, which is 13 percent lower than October of the previous fiscal. Considering the country's export growth potential and consumer base, we have set a target of $47.1 billion turnover in the footwear and leather industry by 2030, Vijayan said. Of which $33.4 billion is domestic industry turnover and the remaining $13.7 billion is export turnover. But we need innovation in both technology and advanced machines to achieve this goal. India is the second largest exporte...
Read more