Indian exporters are pressing New Delhi to revive the oil-for-rice barter mechanism with Iran, the informal payment system India used before 2019 to circumvent U.S. sanctions on Iranian crude. The urgency is driven by four U.S. sanctions waivers expiring in April, including the Chabahar port exemption valid until April 26. [1]

India made its first Iranian oil purchase in seven years this month, with the oil ministry confirming it has "secured crude oil supplies" with "no payment issues." [2] Reuters reported the deal involved no disclosed payment complications — a marked shift from the sanctions-era impasses that froze Indian-Iranian trade. [3]

But exporters want more. The Federation of Indian Export Organisations and rice traders are lobbying for a structured barter: Indian rice and agricultural goods in exchange for Iranian crude at below-market rates, routed through a dedicated rupee-rial mechanism. [4] The model worked before — India imported 250,000-300,000 barrels of Iranian oil per day at its peak.

The ceasefire creates a narrow window. If Islamabad talks produce a sanctions framework adjustment, India could formalize the barter. If Washington reimposes full enforcement, the window closes. Indian traders are betting the U.S. will prioritize the ceasefire over secondary sanctions enforcement — at least for now.

-- PRIYA SHARMA, Delhi.