Gholam Reza Ansari, Iran’s ambassador to India, stated that the two countries are seeking trade opportunities in agriculture. In Bengaluru recently at the invitation at the Federation of Karnataka Chamber of Commerce (FKCCI), he added that the Indian food processing industry could invest in and enter joint ventures in Iran. The ambassador said that the diversification of trade was another measure to accelerate the growth of trade.
Agriculture
Iran has been exporting dry fruit, fresh fruit and saffron to India, but would like to increase its agricultural produce exports to the country, which Ansari described as a huge market in terms of opportunities. He added, “We depend on India for basmati rice, wheat, sugar, processed meat, cattle feed and soya produce.”
Trade between the two countries has increased substantially. In 2011-12, it was recorded at $13,421.17 million. Between April and December the following year, exports stood at $2,063 million and imports at $8,524.89 million. This year, is expected to cross the $20-billion-mark, up from last year’s $15 billion.
Challenges
FKCCI officials stated that the fact that a number of industries from India exported to Iran, but added that there were logistic issues that were hindering trading. Another roadblock is the fact that just one bank (UCO Bank) facilitates all the monetary transactions. Opening multiple bank accounts to enable quicker transactions was the need of the hour.
Oil
Ansari said that while imports from India continued to be dominated by oil, there were immense prospects to boost non-oil exports to India, and that was where fruit and other agricultural commodities were seen as potential trade areas.
“However, the import of non-oil commodities is difficult. For instance, a courier service cannot be used for the exchange of all kinds of product samples exchange. But, now the governments of the two countries are in talks and will come to a practical and logical solution shortly,” he said.
Agriculture
Iran has been exporting dry fruit, fresh fruit and saffron to India, but would like to increase its agricultural produce exports to the country, which Ansari described as a huge market in terms of opportunities. He added, “We depend on India for basmati rice, wheat, sugar, processed meat, cattle feed and soya produce.”
Trade between the two countries has increased substantially. In 2011-12, it was recorded at $13,421.17 million. Between April and December the following year, exports stood at $2,063 million and imports at $8,524.89 million. This year, is expected to cross the $20-billion-mark, up from last year’s $15 billion.
Challenges
FKCCI officials stated that the fact that a number of industries from India exported to Iran, but added that there were logistic issues that were hindering trading. Another roadblock is the fact that just one bank (UCO Bank) facilitates all the monetary transactions. Opening multiple bank accounts to enable quicker transactions was the need of the hour.
Oil
Ansari said that while imports from India continued to be dominated by oil, there were immense prospects to boost non-oil exports to India, and that was where fruit and other agricultural commodities were seen as potential trade areas.
“However, the import of non-oil commodities is difficult. For instance, a courier service cannot be used for the exchange of all kinds of product samples exchange. But, now the governments of the two countries are in talks and will come to a practical and logical solution shortly,” he said.
-[Transfreez Mobile Refrigeration - Name that stands for Refrigerated Truck]
Wednesday, January 22, 2014 IST Nandita Vijay, Bengaluru
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