Agri Business

Prospects for wheat export to Iran improve

PTI New Delhi | Updated on October 10, 2012 Published on October 10, 2012

Iran wants to buy two lakh tonnes of wheat at a price of $325 a tonne during December-January period.

Iran will soon resolve the quality issue related to Indian wheat and may initially import two lakh tonnes of the grain during the December-January period, the Food Minister, K V Thomas said today.

” Our officials have just returned from Tehran. They were informed that the issue of Karnal Bunt, a fungal disease, will be resolved soon. It is their internal problem and they will sort it out soon,” the Minister said.

He said initially Iran wants to buy two lakh tonnes of wheat at a price of $325 a tonne during December-January period.

“Internationally our wheat is accepted. We export to 25 odd countries. If they want to buy, they have to resolve the quality issue at their end. The ball is in their court,” Thomas said.

Iran has been severely impacted by trade sanctions by the US and some other western countries related to its nuclear programme.

The west Asian country wants to step up trade with India, particularly in food products through a bilateral payment arrangement. The wheat export transactions will be done through the UCO Bank in India.

The Indian offer placed before the Iranian officials included the shipment at $ 340 a tonne, loading from Kandla and Mundra ports and the Karnal Bunt tolerance limit of 0.25 per cent.

Iran has not been importing Indian wheat since 1996 because of the quality hurdles.

In the face of surplus stocks, India is now scouting for global wheat market. Over 1.5 million tonnes of wheat has already been exported since it lifted the export ban in September 2011.

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Published on October 10, 2012
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