Foreign currency problems leave Iranian merchants without rice

Business Materials 29 January 2020 20:59 (UTC +04:00)
Foreign currency problems leave Iranian merchants without rice

TEHRAN, Iran, Jan.29


Iranian importers will be sending rice purchased from India back, or export it to another country, since the designated foreign currency has not been assigned to them by the government since November 22, executive secretary of Iranian Rice Importers Association Masih Keshavarz said, Trend reports via ILNA.

"Although Iranian businessmen would face losses with such a move, they're also facing rising costs of demurrage and warehouse storaging, and this inflicts even more damage," said the official.

"Assignment of foreign currency to importers of rice has been stopped and imported rice is stuck at the customs," he said.

The official has indicated that price of 200,000 to 250,000 tons of rice has not been paid for, therefore there is no possibility of importing it into the country.

"Previously, Indian exporters used to send rice to Iran due to credit of Iran's buyers, but thanks to continued delays in payments, the Indian side isn't willing to do any exporting before the payments," he explained.

"Pakistani merchants are avoiding selling rice to Iran and only exporting it if the money is paid beforehand," he added.

Iran annually consumes three million tons of rice. About one million tons is imported, mainly from India and Pakistan.