Government lifts curbs on urea import from Iran Close.

NEW DELHI: The Union government on Wednesday lifted a restriction on urea imports from Iran and asked the State Trading Corporation (STC) to modify its global tender that sought to debar bids by suppliers of Iranian origin.

The government had imposed the restriction as it was under the impression that Iran has banned urea exports and participation of Iranian suppliers in bids, invited by STC, would lead to a delay in supplies of the crop nutrient. But the import restriction was removed after India's ambassador to Tehran clarified that Iran was allowing selective shipments.

"STC's tender is yet to be opened and our ambassador to Iran has informed that although there is a ban on urea exports from Iran, export permits are being given by the Iranian government on a case-by-case basis," fertiliser secretary Ajay Bhattacharya said. "We have asked the STC to modify the tender and allow sourcing of Iranian urea."

The STC had floated a global tender for importing urea worth Rs 300 crore on April 26, with a rider that supply from Iran would not be accepted. The cut-off date for receiving bids is May 4.

"We were under the impression that Iran has imposed a ban on any exports till June this year," Bhattacharya said. "We needed the crop nutrient urgently for the summer crop season. So, to avoid any delay or confusion on sourcing from Iran, we had decided to debar supply of Iranian-origin urea in the tender," he said.

Iran's export restriction on urea had put India in a difficult position earlier this year when Indian Potash Limited failed to complete a urea import bid after successful bidders backtracked at the last minute. These suppliers had quoted a price range of $386-$390 per tonne against the prevailing global price of $410-$440.

Source : economictimes.indiatimes.com