Iran's recent nuclear deal with the U.  S. and other world powers may soon break India's near-monopoly in rice and soymeal exports to the oil-rich Islamic Republic.

Economic sanctions by the world powers had slashed Iran's oil exports by more than 50 per cent and narrowed its options to import rice and other agriculture products to a very small number of countries.  Last year, sanctions stopped dollar payments, but India continued to be a loyal trading partner to Iran.  In response to the sanctions, India began settling part of its oil debt in rupees, which Iran started using for making payments to India for agriculture goods.

The trade in rupees provided India with an edge over other rice and soymeal exporters like Brazil, Thailand and Pakistan.  But as the recently hit agreement has relaxed many sanctions, rival suppliers like Pakistan will now be able to boost their trading with Iran.

Gurgaon-based rice exporter Tilda Riceland's R.  S.  Seshadri said, "Rice exports to Iran rose as India had an advantage over other suppliers in payment mechanism.  Pakistan, Thailand lost share, but they can start grabbing that share again once financial institutions start trade with Iran in dollar terms."

Seshadri suggested that India should boost its competitive power to retain its share.

India's rice exports to Iran jumped 80 per cent in the financial year ended March 31, 2013, from the previous year to 1.1 million tonnes.  Exports of soymeal soared a whopping 400 per cent to 886,776 tonnes during the same period.