UAE stopped all exports, and re-exports of wheat, and wheat flour from India for four months.
The UAE has stopped all exports and re-exports of wheat and wheat flour from India for four months. This was announced on Wednesday by the Gulf country’s ministry of economy. India banned the export of wheat last month to stop prices from going up too much at home.
India banned the export of wheat last month to stop prices from going up too much at home. With this, Indian wheat can’t be grown in the UAE and then shipped to other countries.
The ban, which the ministry called a ‘moratorium,’ started on May 13 ‘in light of international events that have changed the way trade flows,’ the ministry said.
India stopped sending wheat abroad on May 14 unless it was backed by a letter of credit (LC) or going to a country that wanted to make sure there was enough food. Since then, it has let 469,202 tonnes of wheat be shipped.
The United Arab Emirates Ministry of Economy said that the ban ‘applies to all types of wheat and wheat flour, including hard, ordinary, and soft wheat.’ In a statement, it was said that ‘beginning on May 13, 2022, there will be a four-month ban on the export and re-export of wheat and wheat flour from the Republic of India, including from free zones.’
This ‘decision comes as a result of international events that have affected trade flows and in recognition of the strong and strategic ties between the UAE and India, especially after the two countries signed the Comprehensive Economic Partnership Agreement and the Indian government gave its permission to export wheat to the UAE for domestic use.’
India and UAE signed the Comprehensive Economic Partnership Trade Agreement (CEPA) in February to cut all tariffs on each other’s goods. They hope to increase their annual trade to USD 100 billion within five years.
The deal started on May 1st
‘However, companies that want to export or re-export wheat and wheat flour varieties from India that were brought into the country before May 13, 2022, must ask the Ministry for permission to do so,’ the Ministry said.
They must give the Ministry all the files and documents that help verify the shipment’s origin, date of transaction, and any other information the Ministry may need.
The Ministry also said that if a company wants to export or re-export wheat and wheat flour products from a country other than India, they can do so after getting permission from the Ministry.
This application must also be backed up by all the files and documents that help prove where the shipment to be exported or re-exported came from.
The Ministry said that the export permit given to companies is good for 30 days from the date it was given out, and it must be given to the right customs department to finish the steps for sending the shipment out of the UAE.