DOZENS of merchant ships with grains and sugar are stuck outside Iranian ports after weeks of delayed payments, disrupting good flows into the country, reports Reuters.
Food is exempt from the West's sanctions on Iran over its nuclear programme, but the impact of the sanctions on Iran's financial system has created complex and erratic payment arrangements with international companies.
The latest payment issues have led to ships being unable to discharge cargo.
Forty bulk carrier ships were stuck outside the major Iranian ports of Bandar Imam Khomeini and Bandar Abbas.
Iran's Ports and Maritime Organisation stated in a report in November that 37 ships loaded with 2.2 million tonnes of goods had not been able to unload due to 'documentation and hard currency payment issues' at Bandar Imam Khomeini.
Food security is a priority for Iran, and the need for imports has increased because of a drought that has hit domestic food production for two seasons in a row.
Iran is expected to import 5.5 million tonnes of wheat in the 2022/23 season (July/June), down from 8 million in the prior season.
In the previous five seasons, imports averaged 1.1 million tonnes.
Broker Paragon Global Markets (PGM) stated it was unclear how many vessels might have sugar cargoes onboard.
'That is potentially bearish if a large buyer can't find money, then that could leave a large quantity of sugar trying to find a home,' said PGM.
SeaNews Turkey
Food is exempt from the West's sanctions on Iran over its nuclear programme, but the impact of the sanctions on Iran's financial system has created complex and erratic payment arrangements with international companies.
The latest payment issues have led to ships being unable to discharge cargo.
Forty bulk carrier ships were stuck outside the major Iranian ports of Bandar Imam Khomeini and Bandar Abbas.
Iran's Ports and Maritime Organisation stated in a report in November that 37 ships loaded with 2.2 million tonnes of goods had not been able to unload due to 'documentation and hard currency payment issues' at Bandar Imam Khomeini.
Food security is a priority for Iran, and the need for imports has increased because of a drought that has hit domestic food production for two seasons in a row.
Iran is expected to import 5.5 million tonnes of wheat in the 2022/23 season (July/June), down from 8 million in the prior season.
In the previous five seasons, imports averaged 1.1 million tonnes.
Broker Paragon Global Markets (PGM) stated it was unclear how many vessels might have sugar cargoes onboard.
'That is potentially bearish if a large buyer can't find money, then that could leave a large quantity of sugar trying to find a home,' said PGM.
SeaNews Turkey
