February 1, 2012

Grain imports to Iran affected

International sanctions on Iran have caused at least 24 cargo ships carrying a total of 480,000 tonnes of wheat and grains waiting at Iran's coast for unloading, an industry source said.

EU and US sanctions barring contact with Iran's financial sector have caused letters of credit to dry up, forcing grain suppliers to stay away from unloading docks until they can be paid, the source said on condition of anonymity.

"Transfer of money through banks is almost impossible," said the source in the import sector.

Iran imports around 4.5 million tonnes of grain a year, according to the International Grains Council, most of it corn from Brazil, Argentina and Ukraine, mainly for animal feed.

Its farmers produce around 21 million tonnes of grain per year, according to the UN Food and Agriculture Organisation.

The stalled shipments showed the impact Western sanctions imposed over the past three months.