Arab Today, arab today iran eyes big grain buys barter deals crash
Last Updated : GMT 07:36:31
Arab Today, arab today
Arab Today, arab today

Iran eyes big grain buys, barter deals crash

Arab Today, arab today

Arab Today, arab today Iran eyes big grain buys, barter deals crash

Islamabad - Arabsotday

Iran’s attempts to secure millions of tons of wheat via sanction-beating barter deals with India and Pakistan are failing, and Tehran is poised to pay premium prices on international markets to secure food and stave off unrest. Food is not targeted under Western sanctions aimed at deterring Iran’s nuclear program, but in recent months it has paid high prices for grain to work around a freeze on financial transactions due to the measures.Iran had turned to India and Pakistan for wheat to meet some of its needs, but international grain traders say talks with both Delhi and Islamabad are deadlocked. “There is great doubt in the market about whether the Indian deal will happen. They are never going to get the phyto-sanitary standards worked out,” one European grains trader said. “The Indian wheat cannot reach the standards the Iranians traditionally demand,” the trader added. As Iran’s second-biggest crude client, India hoped to reassure Tehran on quality and secure wheat sales to help settle part of its $10 billion a year-plus oil import bill through a barter-style mechanism using rupees. India said last week it can export up to 3 million tons of wheat if supplies are requested. “There is an issue of Karnal bunt [a fungal disease in wheat] ... Iranians are not too keen on Indian wheat because of the quality,” said a Singapore-based trader. “All wheat cargoes have some amount of foreign matter, but India has more because the loading is not mechanized – it is done manually.” An official with France’s grain lobby told Reuters after a visit to Iran that the Islamic republic needs to buy some 2 million tons of milling wheat in the next few months after having imported 3 million tons so far this year. “Rising food prices have become a thorny political issue for the regime and President Mahmoud Ahmadinejad in particular,” said Torbjorn Soltvedt with risk analysis firm Maplecroft. “Given the potential for food shortages to erode support for the regime, Iranian leaders are likely to continue to take an active role in attempting to secure high volume grain shipments through bilateral agreements. Despite some deals falling through, Iran has so far been relatively successful in securing large orders using its state food buyer.” Trade sources said talks between Iran and Pakistan over a 1 million ton wheat barter deal also had hit a growing number of snags including uncompetitive pricing. “There is no movement on the barter proposal with Iran at the moment. Given the delay, it is difficult to say when and if anything will happen,” a Pakistan Commerce Ministry official told Reuters Thursday. In May Islamabad said Iran offered $265 per ton for wheat, but Pakistan asked for international prices of $312 per ton. Benchmark Chicago July soft red wheat futures were priced at $6.11 per bushel or $224.50 per ton in late May. A Middle East-based trader also cast doubt on any deal. “The dynamics for this to work are not there, and there is more chance that the Iranians will reach an agreement with India rather than Pakistan, which shows how doubtful it is,” he said. A Pakistan-based trade source pointed to wider political factors influencing the deal, which would require the nod from the United States. “For better or worse, these days owing to their own domestic problems, Pakistan’s leaders are subservient to U.S. pressure, but outwardly they give different and hard messages for local consumption,” the source said. “Something similar applies to India, which depends on U.S. military and technology support. India seems to talk with Iran but most times does not conclude deals.” Iran is constantly making enquiries in the international market for supplies, trade sources said. “I expect Iran to re-enter the international wheat market in July, and it seems the only origins available rapidly at that time will be U.S. and Black Sea. Western European harvests will only be starting,” a European grain trader said. “I expect Iran to make 3.5 million tons of wheat imports for 2012/13.” Iranian companies have been cut off from much of the global banking system because of the financial measures against Tehran, making payments difficult. But the government has become increasingly adept at sidestepping the restrictions, creating alternative payment systems to secure vital supplies. “The Iranians are working around the restrictions,” another European based grain trader said. “They are constantly price checking and are using other tracks apart from exploring government-to-government deals. One way or the other, there is no doubt they will get their grain.”

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today iran eyes big grain buys barter deals crash Arab Today, arab today iran eyes big grain buys barter deals crash

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday