Goods worth Rs 180 crore shipped from India under the ‘Food for Oil’ programme are blocked at various entry points into Iraq. Despite imminent hostilities, exporters continued to send goods up to mid-March, with the last ship setting sail on March 17, just a couple of days before hostilities commenced.
Although there is a UN imposed trade embargo, India has been a major shipper under the ‘Food for Oil’ programme. Unlike the name, the programme is not exactly a barter scheme. The proceeds of oil exports are maintained under a UN-administered Banq Indosuez account. Simultaneously, UN inspectors examine imported consignments and sanction release of payments from the oil sales account. Iraqi defence spokespersons had last week announced that a ship carrying 13,000 tonnes of sugar from India was turned away by the coalition forces.
