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regular-article-logo Thursday, 09 May 2024

United Arab Emirates orders suspension of Indian wheat export

The Gulf nation’s economy ministry cited interruptions to global trade flows as the reason for its move

Reuters And PTI Dubai Published 16.06.22, 02:23 AM
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.

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. File Picture

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.

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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.

They must submit all documents and files that help verify the data regarding the shipment in terms of its origin, date of transaction, and any other documents that the ministry may require.

The ministry also indicated that in the case of wheat and wheat flour products

of non-Indian origin, companies wishing to export/re-export it may do so after applying to the ministry for export permission outside the country.

This application must also be supported by all documents and files that help verify the origin of the shipment to be exported/re-exported.

The UAE ministry of economy said the ban “applies to all wheat varieties namely hard, ordinary and soft wheat and wheat flour.”

The ministry noted that the export permit issued to companies is valid for 30 days from the date of issuance and must be submitted to the relevant customs department in order to complete the procedures for exporting the shipment out of the UAE.

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.

The pact, known as the Comprehensive Economic Partnership Trade Agreement, took effect on May 1.

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