Iran payment solution in a month: Commerce Secy

Commerce Secretary Rahull Khullar today said a long-term solution to the issue of oil payments to Iran will be in place in a month.

"I am confident that payment crisis will be resolved in a month's time," Khullar said here today on the sidelines of the Indian Tea Association AGM.

Indian refiners are now paying for crude oil bought from Iran through a Turkish bank, after the Reserve Bank snapped a long-standing route used to pay for imports from the Persian Gulf nation.

When asked about the Turkey route, Khullar said it is a "short-term" solution.

Iran, which has been selling crude oil on credit since late December, when the RBI halted the use of a clearing mechanism under US pressure, had on June 27 written about stopping supplies from August if the dues are not paid.

Refiners have tapped Saudi Arabia, Kuwait and Iraq to cover for any supply disruption from Iran, which accounts for 12% of the nation's oil supplies.

Khullar said payment in rupee was one of the options which was being looked into.

Meanwhile, due to the payment related issues with Iran, tea price, specially orthodox was subdued by Rs 10 a kg this year compared to the previous year.

"Between January to August tea export to Iran was down four million kg compared to previous year," Indian Tea Association Secretary general Manojit Dasgupta said.