A worker pours kolam rice for a photograph at a warehouse in the Vashi Agricultural Produce Market Committee (APMC) wholesale market in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

This Indian Rice Exporter Is Not Worried About U.S. Sanctions On Iran

KRBL Ltd., the maker of India Gate basmati rice, is not overly worried about the U.S. reinstating sanctions on Iran. This despite the country along with Saudi Arabia accounting for nearly 40-45 percent of India’s basmati rice exports, according to rating agency ICRA.

“As far as rice is concerned, it is a staple food in Iran and that is why it will be out of the sanctions,” Anil Mittal, chairman and managing director of the company, told BloombergQuint. “In the past too, whenever there are sanctions on any country, essential food items are out of the sanction,” he said citing the examples of North Korea and Sudan.

U.S. President Donald Trump abandoned the landmark 2015 nuclear deal between America and the Iran, and reinstated sanctions, opening an uncertain new chapter for the country and its neighbours. The sanctions threaten to tighten global oil markets and derail billions in business deals.

India, one of the close allies of U.S., exports rice and two-wheelers to Iran while importing crude oil from there. Rice exporters to Iran include KRBL, Kohinoor Foods Ltd. and LT Foods Ltd.

KRBL gets 5 percent of its turnover from Iran, Mittal said. Ergo, the sanctions would not affect their business much. The company’s stock pared early losses and was trading 3.42 percent higher at 10 a.m.

Also read: What's Next: Who Gets Hit When U.S. Resumes Iran Sanctions

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