Since last week, Iran has ceased signing new contracts for the purchase of tea and basmati rice from India. While there has been no clarity from Iranian purchasers as to the reason for this abrupt halt, Indian exporters think it is mostly due to stores, hotels, and marketplaces in the West Asian country remaining closed due to widespread anti-hijab protests.
According to one trade source, Iranian importers may be postponing purchases while New Delhi and Tehran hash out a rupee trade settlement arrangement.
As per exporters, the move would have an influence on these commodities’ exports, notably tea, because Iran imports around 30–35 million kg of orthodox tea and approximately 1.5 million kg of basmati rice from India each year.
While tea exports to Iran have already slowed, purchasers from the country “stopped registering new contracts from last week,” according to Anish Bhansali, managing partner of Bhansali & Company, a significant tea exporter to Iran. “There is no explanation for why this happened so abruptly.” “We asked the Iranian customers, but they had no clear explanation,” he added. “We have alerted the Tea Board and are awaiting clarification.”
While basmati exporters face the same issue, the impact would be less severe because basmati exports have increased due to high demand and rising commodity prices internationally since the Russia-Ukraine war.
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