India's Basmati rice exports to Iran increased by 137 percent or nearly three folds in terms of value between April and September 2013, Business Standard reported on Jan. 2.
India's agriculture and processed food exports to Iran have more than doubled both in value and quantity terms, in the last one year, mainly on account of an exceptional surge in Basmati rice exports. Consequently, this year India's export of Basmati rice export to Iran could be highest conceivable past.
"This year there has been a great surge in Basmati rice exports to Iran. While the quality of rice exported from India has improved, there could be other reasons for the rise in exports. It might be the reason that the Iranian government wants to stock up their inventory of rice," said R Sundaresan, Executive Director, All India Rice Exporters Association.
After US sanctions against Iran, India' export to Iran had suffered a setback. However, with Iran being a key oil supplier to India, both countries reached a new payment mechanism in 2012. Under the method, 45% of India' crude payments were made in rupees through UCO Bank.
The rupee resources were being used for making payments for Indian export. Thus, with Iran unable to procure food grains from other countries, India's rice export has witnessed a surge in volume.
About 85% of India's agriculture and processed food exports to Iran are on account of Basmati rice, which was affected after the US sanctions.