India Rice Exports to Iran to Drop on Payment Delay, KRBL Says.

Anoop Kumar Gupta, joint managing director at KRBL Ltd. (KRB), an Indian rice exporter, comments on outlook for shipment of basmati rice and sales to Iran.

India, the world’s second-largest rice producer, may next week consider allowing additional rice exports, Trade Minister Anand Sharma told reporters today in New Delhi.

Gupta spoke in a phone interview from New Delhi today.

On export prospects:

“This year export is a little bit under pressure and that is because of problems in Iran. There are payment problems with Iran. Because of the U.S. sanctions, there are lots of payment issues and people don’t pay on time. Payments are diverted through Dubai. Last year 900,000 tons were exported, but this year it should be less than last year. Export to Iran is 30 percent of total export from India.”

On demand:

“Basmati is fine rice and a commodity without which people cannot survive. India and Pakistan are the only countries which produce basmati. We have a monopoly position in global market. So I think current demand will sustain.”

On prices:

“ The price of basmati is $1,000 per ton. I think this is the least it will be. Prices will go up in the future.”

Source : bloomberg.com