* Barter still deadlocked more than a year since being
* Iran waiting for outcome of new harvest before fresh
By Michael Hogan
HAMBURG, April 12 No shipments have been made of
wheat from Pakistan to Iran under a one million tonne barter
deal, proposed in March last year and agreed in August 2012, as
payment issues are still unresolved, trade sources familiar with
the situation said on Friday.
An initial consignment of 100,000 tonnes was due to be
delivered to Iran in mid-February but has not been shipped to
date, traders said.
"There is still no shipping schedule and it appears no
agreement on the deal at an inter-government level," one trade
Payment had been agreed for a reduced 35,000 tonnes of
Pakistani wheat but this will not be shipped as the contract
period has expired, the sources said.
The barter deal was to involve Iran exporting fertiliser and
iron ore to Pakistan in exchange for wheat. But it has been
deadlocked over price and quality.
In August 2012, Pakistan agreed a price of $300 per tonne
for wheat. Current Pakistani
wheat export prices are $10-$15 a tonne higher, traders said.
The barter arrangement was among a series of wheat deals
reached by Iran in early 2012 as western sanctions disrupted its
The European Union and the United States imposed sanctions
meant to discourage Tehran's disputed nuclear programme, which
they say has a military purpose. Iran rejects these allegations
and says its atomic work is peaceful.
Western sanctions do not target food shipments, but financial
measures have frozen Iranian firms out of much of the global
banking system, making it difficult to pay for imports on which
Iran relies for much of its food.
"Iran has been buying a lot of grain elsewhere earlier this
year and does not seem to be under much pressure to complete the
barter deal," another trader said. "I have not seen any other
major purchases by Iran in recent weeks, they seem to be waiting
to see how their harvest turns out."
Iran had in March started building grain stocks again, with
purchases of wheat from Australia and Germany, plus maize from
Ukraine, traders said on Mar. 21. Germany has
also been heavily exporting wheat to Iran.
India has been paying for Iranian crude oil imports in
rupees, which can in turn be used by Iran to buy Indian
commodities including rice and soymeal.
(Reporting by Michael Hogan; editing by Veronica Brown and