Govt, RBI to sort out payment issues with Venezuela

India, Venezuela are likely to have a deal by adjusting the rupee against oil payments.

The Dollar Business Bureau

The Indian government and the Reserve Bank of India (RBI) are working together to resolve the payment issue with Venezuela, Commerce Secretary Rita Teaotia said. Indian exporters are facing payment issues from Venezuela. So, the Indian government is in talks with this South American country. To solve the issues of exporters mostly from the pharmaceuticals sector, the two countries are likely to have a deal by adjusting the rupee against payments for oil.

According to Teaotia, Venezuela is not the only country that Indian exporters face a problem with, Sudan too has been inconsistent in paying up. This is mainly due to the internal issues that these countries are experiencing. The Indian government is continuously engaged in holding talks with these countries to resolve the payment issues, she said.

The government is also in talks with the RBI to work on a suitable mechanism to solve the payment issues with Venezuela. With the assistance of the RBI and the Union Finance Ministry, the payment issues can be protected to some extent. But this is still in process, she said.

Teaotia also said that the agreement on non-basmati rice trade between India and Indonesia is about to conclude soon. Indonesia is interested in importing non-basmati rice from India, which India offers at a competitive price. And rice forms the staple diet of Indonesians, she informed.

A concluding agreement is being discussed between the State Trading Corporation of India and its counterpart in Indonesia. So, India will soon have an agreement for the shipment of non-basmati rice to the country of Indonesia, she further said.


The Dollar Business Bureau - May 31, 2016 12:00 IST