January 14, 2019

Sanctions-impacted Iran seeks soymeal from India



Beleaguered by US economic sanctions, Iran now looks to India for its soymeal imports, with the most recent data showing a significant growth of exports to the former in 2018.


The development marks a shift in where Iran gets its soymeal, due mainly to the impact of sanctions the US had imposed. Previously, the country acquired most of its soymeal from Western nations and Brazil.


According to The Hindu Business Line, India's soymeal exports to Iran saw a rise from around 23,000 tonnes last year to about three lakh tonnes between April and December 2018.


"The favourable factor is rupee transactions for trade with Iran," said BV Mehta, executive director of Solvent Extractors' Association of India (SEA). To approve payments in rupees and use these monies to pay for its imports, Iran had updated its payment process with trading partners like India.


SEA data revealed Iran as the third top destination for Indian oilmeals, following South Korea (5.71 lakh tonnes) and Vietnam (4.22 lakh tonnes).


- The Hindu Business Line