Indian exporters on 5-day visit to Iran: FIEO

NEW DELHI: A delegation of about 65 exporters is going on a five-day visit to Iran tomorrow to explore business opportunities in the wake of sanctions imposed by the US and Europe.

"We will meet several Iranian traders. Huge opportunities are available there for Indian exporters," Federation of Indian Export Organisations ( FIEO) President Rafeeque Ahmed said.

The delegation, during the five days till March 14, will negotiate new contracts with Iranian counterparts, he said.

The Department of Financial Services has asked FIEO to bring cases where exporters are facing payment problems with regard to exports to Iran before the government.

The Directorate General of Foreign Trade (DGFT) has agreed to grant all export benefits to exports for which the payment is received in Indian rupee.

The problem with Iran began after the Reserve Bank of India (RBI) in December 2010 withdrew the Asian Clearing Union (ACU) mechanism under which payments were made to Iran.

After the scrapping of the mechanism, Iran, which makes up for over 12 per cent of India''s oil needs, had continued to supply oil on credit despite the outstanding amount crossing USD 3 billion.