Yes. Indian exporters regularly invoice in US dollars, euros and pounds sterling, and their banks receive all three. USD is the most common currency in agri commodity trade, while many EU and UK buyers pay in EUR or GBP to remove their own currency risk.
The currency must be agreed in the contract and shown on the proforma invoice. This is general guidance, not financial advice.
Why USD is the default
Many agri commodities are quoted internationally in dollars, and Indian processors often benchmark their offers against dollar prices. Their banks quote dollar conversion rates competitively. A supplier may price slightly better, or more quickly, in USD.
If you buy in USD but sell in EUR or GBP, you carry the exchange risk between contract and payment. See how currency changes affect your contract price.
Paying in EUR or GBP
- The supplier's bank must be able to receive the currency. Most Indian banks handling exports can.
- The supplier takes on the conversion into rupees, so their price may include a margin for that risk.
- Your own bank charges may be lower, as there is no conversion on your side. Over a year of orders, a better rate on one currency can make a real difference.
- The proforma invoice, contract and any letter of credit must all show the same currency.
What happens at the Indian end
Indian exporters normally convert foreign currency receipts into rupees, as they buy raw material, pay labour and pay costs in rupees. Some keep part of their receipts in foreign currency in an EEFC account, an exchange earners' foreign currency account, to pay foreign costs.
The exporter's bank links your payment to the export shipment. The supplier needs accurate remittance details from you, so always quote the invoice number in the payment reference.
India has introduced arrangements that allow some trade to be settled in rupees through special accounts at authorised banks. These are not yet the norm for most Western buyers in agri trade. If you are considering it, ask your bank and the supplier's bank about the current rules from the Reserve Bank of India.
Agree these points in writing
Whichever currency you choose, keep it for the whole contract. Switching mid-contract invites rounding disputes and letter of credit amendments.
- The invoice currency.
- The bank charge code, OUR, SHA or BEN.
- The supplier's bank name, SWIFT code and account in the company's own name.
- Whether prices are fixed in that currency for the whole contract or linked to an exchange rate.
How we help
We can collect quotes in your preferred currency, so you compare suppliers on the same basis, and we check that the contract and proforma use it consistently. Our guide to bank charges on payments to India covers the fees. Ask for a free sourcing review.