India tea exports to Iran facing payment hurdle: official

Reuters News
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Posted: Feb 09, 2012 1:33 AM
India tea exports to Iran facing payment hurdle: official

NEW DELHI (Reuters) - Payments for Indian tea exports to Iran are facing problems, India's trade secretary said on Thursday, the latest snag in trade between the two countries that is under mounting pressure from a new wave of Western sanctions against Tehran.

Rahul Khullar also said he saw scope for exporting wheat, pharmaceuticals, steel and more rice to Iran.

India is considering stepping 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 U.S. and European sanctions have made it tough for Asian importers to pay for Iran's oil.

The payments row has already triggered problems as Iranian buyers have defaulted on about 200,000 tonnes of rice from their top supplier India.

(Reporting by Matthias Williams; Editing by Krittivas Mukherjee)