For the first time in half a decade, Iran has bought sugar from India, reported Reuters on Tuesday.
Because sanctions prevent Iran from the worldwide financial system, Tehran has agreed to trade oil to New Delhi for rupees that can only be used to purchase Indian goods, most of which cannot be sufficiently produced locally.
“Oil payments have piled up in UCO Bank. Iran is keen to utilize the payments to buy sugar and other food items,” a Mumbai-based dealer with a global agricultural trading business, who requested anonymity because he was unauthorized to speak to the press, told Reuters.
Another source told the outlet that the Islamic Republic could import as much as almost 882 million pounds of raw sugar from India this year, as its domestic output is insufficient to fulfill demand.
India was one of more than several countries that received a temporary waiver in November from the United States to import Iranian oil after the United States reimposed sanctions that were lifted under the 2015 nuclear deal. The waivers expire in May and, according to U.S. special representative for Iran Brian Hook, they will not be renewed.