NEW DELHI: Iran has suddenly suspended imports of tea and rice from India, likely in retaliation for India’s restrictions on some Iranian fruits, two government officials said. . This is surprising as Iran is the top market for both products from India.
“This could be a retaliatory stance against India not eating kiwis and peaches. This information comes mainly from trade channels, not diplomatic channels. But it is very unusual for Iran to block Indian rice, because Indian rice is much cheaper than rice from other countries. There is also a strong political background,” said one of the two officials quoted above, who requested anonymity.
India suspended fresh Iranian kiwi imports in December 2021, citing pest-infested shipments.
“To our surprise, Iran has stopped consuming our tea and rice. We have taken up the Iran issue with the ministry, the Tea Commission, the DGFT and the Indian Embassy in Tehran, saying the government is investigating the cause and we need to be aware of the de facto position. The government should take up the issue with the Iranian government so that it can resume,” said Sujit Patra, secretary-general of the Indian Tea Association.
Questions sent to the Ministry of Commerce, the Ministry of Foreign Affairs and the Iranian Embassy in New Delhi did not receive a response until press time.
“The underlying tension between India and Iran is that the latter wants New Delhi to resume oil purchases,” said Kabir Taneja, a fellow at the Observer Research Foundation.
After reaching $855.72 million in fiscal year 2022, Iran’s rice imports for the April-September period were $641.66 million, while tea imports for the January-September period were $66.39 million. In dollars, it was second only to the UAE.
Previously, vostro accounts set up for India-Iran trade dried up after India stopped sourcing oil from Iran amid US sanctions.
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