n what could come as a morale-booster for the tobacco growers and traders, Iran has invited tenders for importing tobacco from India.
Sources said that Iran is ready to import a good 6-8 million kg of tobacco from India, which could boost the local market in a big way.
After clearing the initial hurdles, the traders are waiting for a final nod of the government to go ahead with the tobacco deal. However, the Indian government is believed to have asked the traders to wait for further instructions keeping in view of the delicate political situation in Iran. Tobacco Board chairman G Kamalavardhan is closely monitoring the situation to win the bid for Indian exporters as it would help stabilise the price for farmers.
Tobacco traders are already on a high following a massive import ../../../css/_had_imported_8_million_kg_and_is_likely_to_import_further_by_the_end_of_this_financial_year.___8220_fvn7x7nvirfubrm6bf0qig.css;It is a massive order and Indian companies had never got such a huge order in the past,” Kamalvardhan told TOI.
International merchants are eagerly waiting for the confirmation of tenders in Iran, which is reportedly offering an attractive price when compared to global prices. “The transaction with Iran is hassle-free as it offers 80% of the amount before shipping of the stocks and the remaining soon after the verification of the produce,” said Tadisetty Muralimohan, managing director, Ethnic Tobacco, which concentrates on exports to Middle East.
He said the Centre is aware of the technical troubles involved in maintaining a trade relationship with Iran and senior officials in the Union government are working overtime to fine-tune the tobacco deal. “We are hopeful of clinching the export order,” observed an exporter Mittapalli Umamaheswara Rao.
Apart from Egypt and Iran, tobacco growers and traders are anxiously waiting for nod from China, which had accepted samples from the board recently. China had banned tobacco imports from India about two decades ago but started negotiations with the Indian authorities after a delegation of Tobacco Board visited Beijing recently.
A board official said with the export market looking bright and the farmers could breathe easy during the next auction season with tobacco set to get a good remunerative price. India produces 250 million kg of tobacco every year but only 55 million kg is exported.