UAE suspends exports and re-exports of Indian wheat for four months
- In Reports
- 06:36 PM, Jun 15, 2022
- Myind Staff
The United Arab Emirates (UAE) has ordered a four-month suspension in exports and re-exports of wheat and wheat flour originating from India, the world's second biggest producer of the grain, state news agency WAM said on Wednesday.
The Gulf nation's economy ministry cited interruptions to global trade flows as the reason for its move but added that India had approved exports of wheat to the UAE for domestic consumption.
The United Arab Emirates Ministry of Economy said the ban "applies to all wheat varieties namely hard, ordinary and soft wheat and wheat flour."
India banned wheat exports in a surprise move on May 14, except for those backed by already issued letters of credit (LCs) and to countries seeking to ensure food security. Since then, it has allowed shipments of 469,202 tonnes of wheat.
Companies wishing to export or re-export Indian wheat brought into the UAE before May 13, when India's suspension began, must first make an application to the economy ministry, it said in a statement.
"However, companies wishing to export/re-export wheat and wheat flour varieties of Indian origin, which were imported into the country before May 13, 2022, must submit a request to the Ministry to obtain permission to export outside of the UAE," the UAE ministry said.
The UAE and India signed a broad trade and investment pact in February that seeks to cut all tariffs on each other's goods and aims to increase their annual trade to $100 billion within five years, Reuters reported.
The pact, known as the Comprehensive Economic Partnership Trade Agreement (CEPA), took effect on May 1.
Image courtesy: Reuters
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