Agricultural and Processed Food Products Export Development Authority's (Apeda) data shows that India's shipment of Basmati Rice has declined by 7.2 per cent to 1.17 million tonnes for the April-June period, first three months of the financial year, from the same period last year.
Default by Iranian importers on some Indian Basmati Rice brands under bilateral deals have hit our export of these products in the June quarter. The government has cautioned exporters to avoid private transactions with Iranian importers.
Many such transactions are done on a private basis without involving banks and regulators. Informed sources say a number of importers dealing primarily with private Basmati exporters had defaulted in making payment of around Rs 5 billion.
According to trade sources, some Indian exporters were dealing privately with Iranian importers without opening of Letters of Credit, which guarantee the receipt of money from importers. According to the Apeda official, around a third of India’s Basmati exported to Iran faces threat of default.