Pakistan, Iran agree wheat price in barter deal

ISLAMABAD Thu Aug 9, 2012 4:44pm IST

ISLAMABAD Aug 9 (Reuters) - Pakistan has agreed a price for 1 million tonnes of wheat it will export to Iran in a barter deal, a senior Pakistani official involved in the negotiations said on Thursday.

The deal, first proposed in March with Iran exporting fertiliser and iron ore to Pakistan in exchange for wheat, has been deadlocked for months over price and quality.

Iran's attempts to secure millions of tonnes of wheat through barter deals with Pakistan and India, avoiding Western sanctions aimed at deterring its nuclear programme, have faltered. Tehran faces premium prices in international markets to secure critical food supplies.

Food imports are not targeted under the sanctions, but Iranian companies have been cut off from much of the global banking system because of the financial measures against Tehran, making payments difficult and discouraging traders.

Iran will import wheat at $300 per tonne, the official from Pakistan's Ministry of National Food Security and Research told Reuters. The official requested anonymity as he was not authorised to speak to the media.

"The price for wheat has been agreed, at $300 dollars per tonne, but Iranian officials still have to visit Pakistan to check the quality of the wheat before shipments can be finalised," the official said.

"We also have to wait for discussions on the price of fertiliser and iron that will come to Pakistan. I don't expect further movement on this until the end of August."

(Reporting by Rebecca Conway; Writing by Qasim Nauman, editing by William Hardy)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Earnings Season

REUTERS SHOWCASE

Record Highs

Record Highs

BSE Sensex, Nifty hit record highs, insurers gain  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Monsoon Revives

Monsoon Revives

Monsoon revival keeps rain above average   Full Article 

Tackling Food Prices

Tackling Food Prices

India to free up extra 10 million tonne wheat in open market  Full Article 

Just Not Enough

Just Not Enough

Amazon's smartphone fails to kindle a "Fire" among reviewers.  Full Article 

Struggling Economies

Struggling Economies

Asian economies to struggle on weak export demand - Reuters poll  Full Article 

Rising Market Value

Rising Market Value

Facebook goes express to mega-cap status  Full Article 

Mining Roadblock

Mining Roadblock

Coal India's plans for 20 mines hit by land, environment delays  Full Article 

Power Jolt

Power Jolt

UAE's TAQA pulls out of India power plant deal with Jaiprakash  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage