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UAE prohibits export, re-export of Indian wheat for four months

The Indian government has previously approved export of wheat to the UAE for domestic consumption, cementing trade relations between the countries and building on the CEPA deal signed between the two countries

The UAE Ministry of Economy has issued cabinet resolution No. 72 of 2022, which imposes a moratorium on the export and re-export of wheat and wheat flour originating from the Republic of India.

The moratorium will be also applicable to free zones, and will last for a period of four months starting from 13 May, 2022, the state-run news agency, Wam, confirmed.

The resolution applies to all wheat varieties, including hard, ordinary, and soft wheat, as well as wheat flour.

Growing need for Indian wheat in the Middle East

India emerged as a key supplier of wheat in the aftermath of the Russia-Ukraine conflict. The two warring nations, which are known as the breadbaskets of Europe, are responsible for over a quarter of the world’s wheat exports.

With these supplies from Russia and Ukraine no longer making their way into global supply chains, prices have risen by more than 40 percent since the start of the year.

However, a severe heat wave reduced India’s wheat yield causing the sub-continent to impose a ban on exports following sharp price rise in domestic wholesale prices.

The heat wave also reduced India’s wheat output projection for marketing year 2022-23 (April-March) to 106.4 million mt from a record 111.4 million mt seen in February, according to an S&P Global Ratings report.

Following the initial ban, India received requests for wheat supplies from the UAE, Bangladesh, Indonesia, Yemen, and Oman.

The Indian government then approved export of wheat to the UAE for domestic consumption, cementing trade relations between the countries and building on the Comprehensive Economic Partnership Agreement (CEPA) signed between the two countries.

UAE Ministry’s moratorium on export, re-export of Indian wheat

The UAE Ministry of Economy’s latest decision to prohibit the export and re-export of Indian wheat for four months comes in view of the international developments that have affected trade flows, and the CEPA deal.

The ministry explained that companies wishing to export and re-export wheat and wheat flour varieties of Indian origin, which were imported into the country before 13th May, must submit a request to the ministry to obtain permission to do so.

India
India emerged as a key supplier of wheat in the aftermath of the Russia-Ukraine conflict

The companies 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 in this regard.

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.

It 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 application must be submitted to the Ministry of Economy through e-mail antidumping@economy.ae or directly by visiting the ministry headquarters.

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Abdul Rawuf

Abdul Rawuf