In what could be a major relief for exporters whose consignments worth Rs 1000 crore (Rs 10 billion) are stranded in Iraq, India has received 45 days extension from the UN to ship out those merchandise to alternate ports, according to Commerce Minister Arun Jaitley.
"We have received a new set of instructions from Permanent Mission of India in Geneva, which have been passed on to the traders," the minister said in New Delhi at a seminar on Exim Policy.
"We have been given 45 days extension to tranship the consignments to alternate ports notified by the UN," Commerce Secretary Dipak Chatterjee said elaborating on the new set of instructions received.
He said industry and trade bodies had been intimated of the new development.
Jaitely had earlier assured that his ministry was exploring ways to manage trade with Iraq through the UN system, even as that country had recently rejected the system of 'Oil for Food' programme.
"Alternate ports could be identified where the existing consignments in the UN-regulated trade could reach Iraq," he had said.
India's trade with Gulf nations contribute to 11 per cent of India's total exports and the "war-zone" was an important trading partner.
"We enjoy a trade surplus of $2.7 billion with the Gulf nations and our exports were growing by 36.33 per cent during April-December," he had said after unveiling the Exim Policy for 2003-04.