New Delhi - The government needs to look into the problems being faced by exporters shipping consignments to Iran in view of the increasing threat of US economic sanctions against the Persian Gulf nation, FIEO said.
Federation of Indian Export Organisations (FIEO) President Ganesh Gupta said that the rupee account currently used for payment settlement has limited funds to meet export requirement only for 3-4 months.
"Other than UCO Bank, no other bank is willing to deal with exporters who are trading with Iran in view of the US sanctions. The government needs to immediately look at the situation and take steps," Gupta said on the sidelines of a function here.
The US has told India and other countries to cut oil imports from the Gulf nation to "zero" by November 4 or face sanctions.
Iran is India's third-largest oil supplier after Iraq and Saudi Arabia. Iran supplied 18.4 million tonnes of crude oil between April 2017 and January 2018 (first 10 months of fiscal 2017-18).
US President Donald Trump has warned other countries from doing business with Iran.
"Anyone doing business with Iran will NOT be doing business with the United States. I am asking for WORLD PEACE, nothing less," he has said in a tweet.
FIEO Director General Ajay Sahai said that the government has to take a call on the issue as the existing rupee account for export purposes have funds for another 3-4 months only.
"There is an uncertainty with Iran on trade front," he said.
Bilateral trade between India and Iran increased to USD 13.8 billion in 2017-18 from USD 12.9 billion in the previous fiscal. However, India's exports goods worth only USD 2.5 billion to that country.