Punjab rice exporters propose barter deal with Iran for oil
India’s basmati exporters have proposed a barter deal with Iran to trade rice for crude oil amid conflict-driven disruptions. The plan aims to ease payment issues, revive exports, and secure energy supplies, while exporters also seek interest relief and inclusion of stranded shipments in ongoing diplomatic negotiations.
New Delhi: India’s basmati rice exporters have approached the Centre with a proposal to revive trade with Iran through a barter mechanism, seeking to exchange rice for crude oil as the ongoing conflict in the region disrupts exports and strains the sector,with payments settled in Indian rupees, The Hindu businessline reported.
In a letter to Commerce Minister Piyush Goyal on March 31, association director Ashok Sethi highlighted the financial strain faced by exporters due to disruptions caused by the ongoing conflict in the region.
He said the tensions involving the United States, Israel and Iran have created an unprecedented crisis for rice exporters, and suggested that a barter deal could help ease both India’s oil needs and the challenges faced by exporters.
Sethi also pointed out that with some easing of sanctions during the conflict, India could use the opportunity to revive trade ties with Iran through a rupee-based mechanism.
He added that as discussions are already underway to facilitate oil and LPG shipments through the Strait of Hormuz, stranded basmati rice consignments at ports or at sea should be included in negotiations to ensure their delivery.
The association has also sought a waiver on bank interest charged during the conflict period to reduce the financial burden on exporters.
Despite the current challenges, India’s basmati rice exports during April–January of the 2025–26 fiscal rose 11 per cent year-on-year to 5.39 million tonnes.
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Source : Chinimandi
