India pays crude bill to Iran in rupee
India will import crude oil from Iran using a 50% rupee-based payment and 50% export commodities mechanism.
"An agreement had been signed by the Indian and Iranian governments on Nov 2, 2018 for oil payment in rupees and 50 percent of those funds had been earmarked for exports," according to an Indian government document.
Oil payments are being made in rupees only as against earlier arrangements where there was a ratio of 45 percent rupees and 55 percent euros, the document said, Reuters reported.
Russian and Chinese shipping companies were pitching to facilitate India-Iran trade, the source said.
Under US sanctions, India will be allowed to export farm commodities, food, medicines, and medical devices to Iran.
India is the second biggest purchaser of Iranian crude oil and Indian refiners imported around 10 million barrels of Iranian crude in October.
India's total demand for crude oil is 4.6 million barrel a day, which ranked the country third in the world's largest consumers after the United States and China, India receives 80 percent of its oil needs from Iran.
But later the US administration has forced to grant waiver to eight countries including India to continue purchasing Iran’s crude oil aimed at preventing oil price hikes and would be granted in exchange for continued import cuts.105/205