Since last week, Iran has stopped signing new agreements to import tea and basmati rice from India, according to a report.
According to the report, Iranian buyers have not provided any explanation for the abrupt halt in their purchases of Indian tea and rice.
The ongoing anti-Hijab protests in Iran, which have caused businesses to close across the country, according to Indian importers and traders, may be to blame for the sudden halt in business.
According to the report, Iranian importers may be postponing purchases while New Delhi and Tehran negotiate a rupee trade settlement. The most recent developments will have an effect on trade because Iran annually imports 1.5 million kg of basmati rice and close to 30-35 million kg of orthodox tea from India.
A tea exporter stated that the Tea Board of India needs to provide clarification as to why the signing of new contracts has been suspended.
The same problem affects basmati rice exports, but the effect will be lessened because basmati exports have increased due to high demand brought on by the conflict in Ukraine.
Among the top three goods that India exports to Iran are rice, raw sugar, and tea. India’s exports to Iran have grown at an annualised rate of 11.4% over the past 25 years, from $149 million in 1995 to $2.24 billion in 2020.
Iran’s exports to India have decreased over the past 25 years at an annualised rate of 2.35%, from $501 million in 1995 to $277 million in 2020. Iran exports nuts, tropical fruits, nuts, apples, and pears in addition to cyclic hydrocarbons, ammonia, and acyclic alcohols.
A three-day demonstration against the morality police and the nation’s dress codes for women is taking place in Tehran, the capital of Iran. It was sparked by the death of Mahsa Amini, who was killed by the morality police after they detained her for allegedly wearing the hijab improperly.