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Indian exporters hold Basmati shipments to Iran

Fearing payment defaults in the light of the sanctions imposed by UN on Iran, Indian exporters have withheld shipments of Basmati rice to Iran. The ambiguity over trade with Iran in the light of the general elections has further made exporters apprehensive. “Unless there is new agreement with the Iranian government on export terms, we’ve decided to put shipments on hold as there are chances of defaults and money getting stuck,” stated Gurnam Arora, Joint MD, Kohinoor Foods. This would have significant repercussions for these players, since Iran is a major export destination for Basmati.