FIEO says US sanctions stopping exporters from taking orders from Iran

Exporters are apprehensive about taking orders from Iran due to the reimposition of US sanctions on that country and it could impact India's overseas shipments to the Persian Gulf nation, FIEO today said.

Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said big shipping companies to are not taking consignments to Iran.

"There is huge exports potential in Iran but we are facing payment problems due to the US sanctions. Exporters are very apprehensive about taking orders. Future exports to Iran are looking uncertain," Gupta said.

Earlier this month, the US reimposed several unilateral sanctions against Iran. The sanctions have targeted Iran's access to US banknotes and key industries, including cars and carpets.

Gupta, however, said India's approval to Iranian Bank of Pasargad to open a branch in Mumbai would help promote trade between the two countries.

Iran is one of the major trading partners of India as new Delhi imports huge quantity crude oil from the Persian Gulf country.

Iran was India's second biggest supplier of crude oil after Saudi Arabia till 2010-11 but western sanctions over its suspected nuclear programme relegated it to the 7th spot in the subsequent years.

In 2013-14 and 2014-15, India bought 11 million tonnes and 10.95 million tonne of crude oil, respectively, from Iran.

The Trump administration is piling pressure on India, China, and other buyers to end all imports of Iranian oil by November 4 as it looks to choke Iran's economic lifeline with sanctions over its nuclear programme.

India imported USD 10.5 billion worth of goods, mainly crude oil, from Iran and exported commodities worth USD 2.4 billion in 2016-17.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)