Indian exports to Iran was said to be around $5 billion/year when the previous agreement of partial Rupee trade was in force. But it came down to $2.5 billion/year when the mutual trade finally returned to Dollar terms.
Current trade deficit with Iran is $8 billion.
Under the new agreement, IRAN WILL UTILIZE 50% OF THE EXPORT EARNINGS ON IMPORT OF FARM PRODUCTS, FOOD ITEMS AND MEDICINS FROM INDIA. Automobile items, petroleum products, petrochemical products, steel, metals and such other industrial goods are not allowed under this agreement.
THEREFORE, WE THINK THAT THE PRICES OF ALMOST ALL AGRO ITEMS WILL SUBSTANTIALLY INCREASE.
ACCORDING TO MARKET RUMORS, BUYERS FROM EMERGING AND SIDE MARKETS ARE OFFERING UPTO $4.5/LB/W320/CONFIRMED QUALITY/Q1, 2019. UNDER THE RUPEE TRADE, SELLERS MAY ASK EQUALLANT TO $4.80/LB/SAME QUALITY & SAME CONDITIONS.
— IF RUSSIA STARTS BUYING UNDER RUPEE-ROUBLE AGREEMENT, “SKY WILL BE THE ONLY LIMIT”