Iranian Traders Halt Signing of New Contracts for Buying Tea, Basmati Rice from India: Report

Iran has stopped signing new contracts for the import of tea and basmati rice India Since last week, according to a report in Economic Times.

The Economic Times report said that there has been no explanation from the Iranian buyers for the sudden stoppage of Indian tea and rice purchases.

Indian traders and exporters believe that the reason for the sudden stop could be due to the ongoing countrywide anti-hijab protests, which have led to the closure of shops, hotels and restaurants across Iran.

The Economic Times report said Iranian importers are delaying purchases as New Delhi and Tehran work on a trade deal worth Rs. The recent developments will impact trade as Iran imports around 30-35 million kg of traditional tea and around 1.5 million kg of basmati rice from India on an annual basis.

A tea exporter speaking to The Economic Times said that there is no clarity on why the signing of new contracts has been stopped and that they are waiting for some clarity from the Tea Board of India.

Export of basmati rice also has the same problem but the effect will be less as basmati exports have increased due to high demand due to war in Ukraine.

The top three items exported by India to Iran are rice, raw sugar and tea. Over the past 25 years, India’s exports to Iran have grown at an annual rate of 11.4%, from $149 million in 1995 to $2.24 billion in 2020.

Meanwhile, over the past 25 years, Iran’s exports to India have declined at an annual rate of 2.35%, from $501 million in 1995 to $277 million in 2020. Iran exports cyclic hydrocarbons, ammonia, acyclic alcohols, nuts, tropical fruits, nuts. , apples and pears.

The Iranian capital Tehran is holding a three-day protest against morality police and the dress code imposed on women in the country, sparked by the death of Mahsa Amini, who died at the hands of morality police after they allegedly forced her to wear was arrested for. Hijab improperly.

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