Punjab rice exporters ask Centre to arrange a barter system with Iran

New Delhi: The Punjab Rice Millers Exporters Association has urged the Centre to arrange a barter agreement with Iran, under which Indian rice would be exchanged for Iranian crude oil.

In a letter to Commerce and Industry Minister Piyush Goyal, the association said the barter deal would help ease India’s oil crisis and revive traditional trade ties with Iran.

It would also enable farmers to clear stocks of Basmati rice from the previous season ahead of the new kharif sowing season in May, the association said.

Since India resumed buying Iranian oil following the US waiver of sanctions, Indian traders have been demanding that the Centre restore trade with Iran.

Exporters have expressed serious concern over Iran’s continued restrictions in the Strait of Hormuz, as more than 80% of India’s Basmati rice exports are destined for West Asian countries stranded at ports or on the high seas. This has caused massive financial losses to exporters, the association said.

The Centre on Saturday said that Indian refiners are buying crude oil from Iran as part of their efforts to secure oil supplies amid disruptions in energy flows due to the ongoing war in West Asia, and that there are no payment-related difficulties in paying for Iranian oil.

The Union Ministry of Petroleum and Natural Gas also dismissed reports that an India-bound oil tanker carrying Iranian crude had rerouted mid-voyage to China due to “payment issues”.

This was the first time the Ministry confirmed that it is buying fuel from Iran following a one-month sanction waiver by the US. The US waiver for Iranian oil imports is set to expire on April 19, while the six-month waiver for India’s stake in Chabahar port ends on April 26.

The Ministry further said refiners have secured their crude oil requirements, including from Iran. "India imports crude oil from 40+ countries, with companies having full flexibility to source oil from different sources & geographies based on commercial considerations, " the Petroleum Ministry said in a post on X.