ABU DHABI (Commodity Online): With the free market economy and government security program, Dubai has captured 93% of the world rice re-export market but United States (US) banking sanctions to Iran has started affecting profitability from the trade.
Dubai re-exports around 360,000 tons of rice a year and around 90% of that goes to Iran.
Due to the huge fluctuations in the Iranian currency has made it difficult for Iranian buyers to pay for staple food imports.
Meanwhile, the Iran sanction problem has also affected badly the Indian rice exporters as most rice exports to iran is indirectly through Dubai and it is based on 90 to 220 days credit.
But the due to sanction problems the payment to the Indian traders has been delayed.
While, Indian exporters are expecting to receive payments in the restricted rupee currency for sales to Iran and also allow to reduce burden over the Iranian traders.
Iran depends on imports for about 45% of its annual rice consumption of 2.9 million tons.
