InfoAnda - Exclusive: Iran defaults on rice payments to India |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Japan PM eyes crucial election as problems mount | | 4 January 2010
New Michael Jackson song leaked to celebrity website | 17 July 2009
Huge tomb found at Egypt's Saqqara pyramid | 5 January 2010

Newark mayor ups the ante on comic Conan O'Brien | 2 October 2009

Forum Views () Forum Replies ()

Read more with google mobile : Exclusive: Iran defaults on rice payments to India |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Davos 2012 Technology Media Small Business Legal Deals Earnings Summits Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. Marcus David Cay Johnston Bethany McLean Edward Hadas Hugo Dixon Ian Bremmer Mohamed El-Erian Lawrence Summers Susan Glasser The Great Debate Steven Brill Geraldine Fabrikant Jack & Suzy Welch Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (0) Full Focus Editor's choice A selection of our best photos from the last 48 hours. Full Article Images of January Best photos of the year 2011 Follow Reuters Facebook Twitter RSS YouTube Read FBI warns of threat from anti-government extremists 06 Feb 2012 UPDATE 1-Chrysler spokesman Eastwood was critic of auto bailout 06 Feb 2012 DEA raids 2 CVS pharmacies in drug abuse probe 06 Feb 2012 Kids in Washington home blast suffered chop wounds 1:22am EST Super Bowl, Madonna set new TV audience records | 06 Feb 2012 Discussed 195 Job growth seen slowing after holiday boost 141 FBI warns of threat from anti-government extremists 98 Indiana poised to approve anti-union law Watched Jet engine bike passes test-fire trial ahead of speed record bid Mon, Feb 6 2012 Floating cities proposed as havens of future happiness Fri, Feb 3 2012 Deadly pitcher-plant inspires super slippery nano-surface Sun, Feb 5 2012 Exclusive: Iran defaults on rice payments to India Tweet Share this Email Print Related News Analysis: Iran economy could limp along under sanctions Mon, Feb 6 2012 REFILE-UPDATE 2-China extends Iran oil import cuts, supply talks to resume Mon, Feb 6 2012 Iran threatens retaliation over oil embargo Fri, Feb 3 2012 IAEA, Iran to meet again after "good" talks Wed, Feb 1 2012 Iran sanctions "biting" in recent weeks: CIA chief Tue, Jan 31 2012 Analysis & Opinion Why the budget is under stress Without real sign of rate cuts, Indian equity rally still fragile Related Topics World » In this file picture, samples of rice are seen on the desk as a rice wholesaler checks his books while waiting for customers at his shop in south Tehran June 18, 2008. Credit: Reuters/Caren Firouz By Ratnajyoti Dutta and Mayank Bhardwaj NEW DELHI | Tue Feb 7, 2012 2:17am EST NEW DELHI (Reuters) - Iranian buyers have defaulted on payment for about 200,000 tonnes of rice from their top supplier India, exporters and rice millers said on Tuesday, as trade between the two countries comes under mounting pressure from a new wave of Western sanctions against Tehran. While a sharply weakening rial has made forward purchases costlier, financial sanctions are making it difficult for Iranian traders to continue using an unofficial route involving middlemen based in Dubai to keep paying Indian suppliers. The defaults, totaling about $144 million, were for shipments under term deals in October and November free-on-board Indian ports, Indian traders said. Most Indian rice exporters allow 90 days credit. India is Iran's top rice supplier, accounting for some 70 percent of its annual requirement of 1-1.2 million tonnes of the grain, mainly the aromatic variety called Basmati. "It is a serious issue and we do not rule out further payment defaults by Iran," said Vijay Setia, president of the All India Rice Exporters' Association. "We have requested the government to step in." Setia said India should not send any more rice to Iran on credit, adding suppliers such as those in Thailand, Vietnam and Pakistan had already stopped doing so. Traders and officials in Iran could not be immediately reached to comment. The United States slapped fresh sanctions on Tehran from the start of this year, targeting financial institutions that deal with the central bank, hoping to stem oil revenues and persuade Iran to abandon a suspected nuclear weapons program. The European Union followed with a ban on Iranian oil this week that is expected to take full effect within six months. The rice defaults could be the latest sign that those sanctions are biting, hampering staple food supplies to Tehran as Iranian importers find it increasingly difficult to settle payments. Grain ships are docked outside Iranian ports, traders are not booking fresh cargoes and exports of staples to Iran such as maize are falling due to problems collecting payment from buyers. The rice default is the latest snag in India-Iran trade, which is heavily skewed towards Tehran. India is Iran's second-largest buyer of crude and it has struggled to settle payments worth some $11 billion annually after New Delhi scrapped a long-standing mechanism in 2010 under pressure from Washington. While New Delhi has switched to a payment conduit for its Iranian oil using a Turkish bank, Indian rice exporters have been using a loose, unofficial route involving a network of middlemen based in Dubai. The middlemen receive payments from Iranian importers in rial and pay Indian exporters in U.S. dollars. The consignments are sent directly from India to Iran. But Indian traders said the defaults started after the rial plunged over the past month, making previous purchases costlier for Iranian importers. The cost of transactions also went up for the Dubai middlemen as they use U.S. dollars to pay Indian exporters. On January 26, Iran announced an 8 percent devaluation of the rial and said it would enforce a single exchange rate, aiming to stamp out a black market where the dollar's value has soared due to fears over new sanctions imposed by the West. Indian traders said about 20 Iranian companies have failed to clear their dues during the past month. "It threatens to jeopardize the trade with them, hurting both India and Iran," Anil K. Mittal, chairman of KRBL Ltd, a leading Indian rice miller and exporter, told Reuters. "Due to sanctions on Iran, currently banks are not involved in payments to Indian rice suppliers. The payments are direct and at times on credit, making Indian exporters vulnerable to defaults. Indian traders must avoid supplying on credit." BOOSTING EXPORTS TO IRAN The defaults could also put a question mark on the willingness of any Indian traders to take part in plans by India to step up exports in a range of goods, including farm products such as wheat and rice, to settle part of its oil dues to Iran. New Delhi will send a delegation to Iran this month to explore boosting exports to smooth use of the restricted rupee currency, which the two sides have agreed to use to settle 45 percent of India's $11 billion a year oil bill. But this would give Iran large amounts of a currency which is difficult to use for international trade. An Indian ministerial panel on food exports meets on Tuesday to review rice and sugar shipments. The issue of exports to Iran is not on the agenda, government officials said, seeking to knock down reports that the panel could discuss the possibility of boosting rice and wheat exports to Tehran. India, is expected to produce 102.75 million tonnes of rice in the crop year to June 2012, a farm ministry forecast said last month. Basmati makes up around 5 percent of India's total rice production. India's January 1 rice inventory at government warehouses was 29.8 million tonnes against a target of 11.8 million tonnes. ($1 = 48.93 rupees) (Writing by Krittivas Mukherjee; Editing by John Chalmers and Neil Fullick) World Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Tuesday, 7 February 2012
U.N. nuclear talks in Tehran: frustrated hopes |
Victims weep, ridicule Norway killer's court speech |
At least 18 dead in shipwreck off Dominican Republic |
Nigeria names seven behind Eni pipeline blast |
Egyptian NGO crackdown could impact U.S. aid: White House |
Cyberplex unit to pay $4.8 million to Yahoo for poor traffic |
Egypt telecom tycoon Naguib Sawiris eyes new horizons |
Super Bowl TV audience reaches record 111.3 million |
Country singer Travis charged with being drunk in public |
The Voice gets off to superstar ratings for NBC |
Bombardment of Syria's Homs resumes: activists |
Iran calls U.S. assets ban antagonistic move |
Maldives police mutiny, take over state broadcaster: witnesses |
Exclusive: Iran defaults on rice payments to India |
U.S. lifts restrictions to support IFIs work in Myanmar |
Fidel Castro warns of bleak future, touts memoir |
Rescuers search for missing after Philippine quake |
Insight: India's reluctant young emperor, Rahul Gandhi |
Chinese rural ire grows with land grabs: survey |
Australia floods fail to dampen big cotton crop |
Verizon, Redbox plan Netflix challenge |
Facebook governance a concern for California pension fund |
Kindle-wielding Amazon dips toes into physical world |
Wolfson loss widens, forecasts weak Q1 |
Cisco seen reporting solid second quarter |
Oracle seeks new trial against SAP over downloads |
Super Bowl, Madonna set new TV audience records |
Night of the Living Dead actor Bill Hinzman dies |
Oscar producers urge fans to celebrate movie memories |
Iran shrugs off latest U.S. sanctions, trade suffers |
Netanyahu can't fly solo in Israel to attack Iran |
Italy court extends house arrest for cruise ship captain |
Kidnapped Chinese workers in Sudan freed |
Victim urges penalties for bishops who don't tackle sex abuse |
Hackers sought $50,000 from Symantec for anti-virus blueprint |
Facebook will release more user data: lobby group |
Rogers, BCE in talks with Apple over iTV: report |
Madonna world tour to start on May 29 |
Prince Charles leads Dickens 200th celebrations |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01