Iranian importers have stopped signing new contracts to import items like tea and basmati rice from India. So far it is not clear why the Iranian importers made this decision. But the signing of new contracts has stopped.
Iran stopped buying tea and basmati rice
According to The Economic Times, Indian exporters believe that the ongoing protests in Iran could be a reason for this change, as hotels, shops etc. are not opening due to them.
At the same time, a group of Indian exporters also believe that there is an agreement between India and Iran related to the Indian currency trade, which this stagnation may come due to the time it takes.
This deal will affect things like tea and basmati rice exported from India.
According to the exporters, due to all this development, the effect will be seen especially in the export of tea. Iran imports about 30-35 million kg of tea and about 1.5 million kg of basmati rice from India in a year. Anish Bhansali, the managing partner of Bhansali & Co, a major tea exporter from Iran, said in media reports that Iran had already reduced tea exports, now since last week buyers have stopped new contracts.
At the same time, the Indian exporter is quite surprised, he doesn’t get a clear answer about it. According to the exporters, it is not clear why this suddenly happened. We have asked Iranian buyers, but they have not been clear on the answer either. “We have informed the Tea Board about this and we are waiting for all to clear up.
On the other hand, basmati exporters are also facing a similar problem, but its effect is being seen a little less. There is also a reason for this, due to the high demand for basmati rice in foreign markets, there is an increase in exports. After the war between Russia and Ukraine, due to the increase in demand for basic products, there has been an increase in prices.
Also, Read
- How rice is fortified, why its is important?
- Climate Change and effect on Rice Production in Thailand
- How India’s broken rice export ban will affect global food inflation?
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