UAE Suspends All Exports and Re-exports of Wheat From India For 4 Months

The UAE has suspended all exports and re-exports of wheat originating from India for four months. Image used for representation.

(Photo: PTI)

The United Arab Emirates (UAE), on Wednesday, 15 June, suspended all exports and re-exports of wheat originating from India for four months, the UAE's ministry of economy said.

Interruptions to global trade flow was noted as the reason behind the move.

The Emirates ministry of economy stated that the ban "applies to all wheat varieties namely hard, ordinary, and soft wheat and wheat flour."

A moratorium has been imposed "on the export and re-export of wheat and wheat flour originating from the Republic of India, including free zones."

This comes after India imposed a ban on wheat exports in May this year to control the rise in its prices.

The "decision comes in view of the international developments that have affected trade flows, and in appreciation of the solid and strategic relations that bind the UAE and India, especially after the signing of the Comprehensive Economic Partnership Agreement (CEPA) between the two countries and the Indian government's approval to export wheat to the UAE for domestic consumption," the ministry said further.

The two countries had, in February, signed an agreement, CEPA, to cut tariffs on their goods.

India's Decision of Wheat Export Ban

Wheat exports were banned by the Indian government on 13 May in a bid to ensure food security in the country.

Speaking at a United Nations Security Council (UNSC) meeting, India justified the decision, saying that the measure will help the country manage its food security while still supporting vulnerable countries.

"In order to manage our own overall food security and support the needs of neighbouring and other vulnerable developing countries, we have announced some measures regarding wheat exports on 13 May 2022. Let me reaffirm that these measures allow for export on the basis of approvals to those countries who are required to meet their food security demands. This will be done on the request from the concerned governments," India's Minister of State for External Affairs V Muraleedharan said.

All exports have been banned, besides those backed by issued letters of credit (LCs) to countries that are seeking food security.

Since the move, India has shipped 4,69,202 tonnes of wheat.

(With inputs from Reuters and PTI.)