Private Iranian importers have bought about 20,000 tonnes of barley from India, European traders said on Monday.

The grain was for shipment in July from the Indian port of Kandla, the traders said.

Iran has been stepping up grain purchases in recent weeks following an easing of Western sanctions, which has made deals easier to arrange.

"Business with Iran remains difficult, but the relaxing of the sanctions is enabling more deals to be done by the Iranian private sector," one of the traders said.

Iran was never barred from buying food under the Western sanctions, which were imposed over the country's disputed nuclear programme, but EU and US financial measures have made trade more difficult for the past two years by hindering payments and ocean shipping.

A breakthrough deal between world powers and Iran on November 24 will halt Iran's most sensitive nuclear activity and ease sanctions by the US and the European Union on some sectors of Iran's economy for an initial six-month period.

"Iran seems to have a substantial import requirement after a poorer-than-expected grain harvest this year," another of the traders said. "I also expect more wheat purchases," he stated.

Ocean shipping arrangement is not yet back to normal despite the loosening of sanctions, shipping executives said.

"Shipment of cargoes is still being done by selected vessels including from the Middle East as well as China and also Iran itself, as many Western operators remain wary of doing the business," a shipping industry source said.

Sales of Indian-origin barley to Iran are rare, traders said.

"India had a good barley harvest which has given it some useful export supplies," a trader said. "Indian barley has been exported to Saudi Arabia but this is the first barley sale I have seen this year by India to Iran."-Reuters