Iran-US Faceoff Worries India's Ajwain Exporters Close.

MUMBAI: A payment crisis with Iran, precipitated by US sanctions on the Asian neighbour, has an unlikely victim in India. Exporters of ajwain, known as bishop's weed the world over, are worried about a likely fall in their business with Iran and the possibility of deferred payment.

India, the world's biggest producer, exports 550 tonnes per year mostly to Jeddah, a major trading centre. This year, however, it may ship 15% less due to the tension in Mideast Asia. The spice is mainly used for medicinal and culinary purposes.

"We are unsure of exporting our produce to Iran this year as the nation is going through financial problems," said a major exporter based in Mumbai. The crop is raised mostly in Jamnagar (Gujarat), Kurnool (Andhra Pradesh) and Jaipur and farmers are estimating a good production this season (December-April). They expect to produce 5.5 lakh bags (each of 60 kg) against 4.25 lakh bags last year.

But export prices may not go above Rs 115 per kg as global indicators are weak while local prices are around Rs 75 per kg.

"A deferment of payment might create problems for us. Also, we haven't received any substantial demand from Saudi Arabia, which is a big market for us. So we are finding alternative markets to divert our supply," said Jamnagar-based exporter Milan Kotecha of Kotecha Trading.

Importers usually place their demand from mid-December to mid-February. Demand from Europe is growing at a 5% clip. Last year, the civil unrest in Yemen, Bahrain, Egypt and Libya hampered the overall demand and ajwain producers had to settle for lower prices in the domestic market.

Exporters became restless last year when the government reduced incentives for exports. "Our exports dipped by 50% last season," said Yashodhan Shah, an export manager of Vaibhav Corporation, Ahmedabad.

Source : economictimes.indiatimes.com