India mulls barter system to satisfy Iran's basmati appetite amid sanctions

Iran is largest importer of basmati. India is considering barter as a mode of receiving payments

The payment system with Iran is being relaxed further for basmati rice exports. This comes after the US allowed India to continue importing crude oil from Iran and develop the Chabahar port. 

Now, India is finalising guidelines for exporting basmati rice to its largest importer — Iran — on a rupee payment basis.

The move has come as a positive development for exporters who are paying a higher price for procuring basmati. 

Last year, India exported $4.17 billion worth of basmati rice and Iran was the largest buyer of rice (at $905 million). In the first five months of 2018-19,