November 29, 2012

Under the terms of a one-million tonne barter deal agreed in August, Pakistan will start shipping wheat to Iran this December.

Muhammad Najib Balagamwalla, chairman of grain exporter Seatrade Group said that Iranian wheat imports are usually handled by the private sector but the state had to step in and help with purchasing earlier this year because of the disruption to trade financing caused by Western sanctions aimed at Iran's disputed nuclear programme.

The barter deal, first proposed in March with Iran exporting fertiliser and iron ore to Pakistan in exchange for wheat, was deadlocked for months over price and quality.

But in August, Pakistan agreed a price of US$300 per tonne, an official from the country's Ministry of National Food Security and Research told media.