Thursday 28 February 2019

#Iran Gets a Little Sweet Relief From Oil-Money Headache in India - Bloomberg

Iran Gets a Little Sweet Relief From Oil-Money Headache in India - Bloomberg:

Sanctioned by the U.S., Iran’s found a sweet way to use the cash it’s accumulated from trading oil: Purchase sugar from India.

Iran is struggling to spend the rupees it’s made from oil sales to India that are sitting in the south Asian nation’s banks. Meanwhile, sugar stockpiles are stacking up in India after a bumper crop. Now the two have struck a deal that eases each other’s woes -- albeit only to some extent.

The Government Trading Corporation of Iran will buy 150,000 tons of raw sugar from Indian mills for delivery in March-April, paying in rupees from escrow accounts held at UCO Bank. Indian sweeteners regain access to an old market, which has been dominated by Brazil, the world’s biggest producer and exporter.

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