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.
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.
Watch the full conversation here: