May 4, 2012
Authorisations hinder Iran''s animal feed imports
Authorisations imposed on Iran are making it difficult for private importers to get letters of credit or make international fund transfers through banks.
Prompting importers to offer payment through Indian banks.
This week offers were sought of 200,000 tonnes of barley for animal feed, to be shipped to Bandar Abbas with payment being offered via an Indian bank, traders said.
"Iran is offering a convertible currency letter of credit from India for the barley," one trader said.
Iran''s state grains agency moved to step up buying on international markets after western sanctions disrupted trade finance for Iranian private buyers, preventing them from making purchases.
The sanctions have not targeted food shipments, but the financial measures have frozen Iranian firms out of much of the global banking system.
Traders said on April 26 that Iran had purchased about 70,000 tonnes of Brazilian corn and that more Iranian buying of feedgrain was expected.
Indian group Hinduja said on April 10 its banking arm would continue financing Iranian food deals. But traders said another Indian bank was involved in the payment offer for the barley this week.
The state purchases of feed grain follow buying by Iran''s state food agency GTC of over two million tonnes of milling wheat in March, also building up stocks after private buyers were hit.
Traders said GTC was still making regular enquiries about milling wheat prices and could make some new wheat purchases.