India’s industry officials say Tehran might buy around 3 million tons of wheat from New Delhi through private deals valued at USD 750-900 million.
“The payments by Iran could be in rupees…It is being worked out,” The Wall Street Journal quoted an Indian industry official as saying, on condition of anonymity, on Tuesday.
Another official noted that a delegation consisting of representatives of Iran’s Central Bank is expected in New Delhi this week to discuss the deal and the payment mechanism.
The source added that Iran is also keen to buy edible oils, corn and sugar from the South Asian country.
New Delhi’s growing interest in expanding trade ties with Tehran comes as the Western powers recently adopted fresh sanctions against Iran’s oil and financial sectors, and have ever since sought to pressure other countries to follow suit.
On December 31, 2011, the United States imposed new sanctions against Iran arguing that Tehran’s nuclear energy program aims to produce atomic weapons. The sanctions aim to prevent other countries from importing Iranian oil and carrying out transactions with the country’s Central Bank.
European Union (EU) foreign ministers also approved sanctions against Iran’s oil and financial sectors under the same pretext on January 23. The EU embargos include a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states, and a ban on selling grains, diamonds, gold, and other precious metals to Tehran.
Observers believe that India will press on with its plan to increase trade ties with the Islamic Republic despite fresh Western sanctions.
——Agencies