The ban on re-export of Indian wheat and how it will benefit Indian migrants too

India wants the wheat it exports to the UAE to be consumed locally and not re-exported

New Delhi, Jun 16: Welcome to the international economic impact of hate read a tweet by actress, Richa Chadha following news reports that the United Arab Emirates had decided to suspend export of Indian wheat for four months.

Citing the state news agency, WAM reports said, "UAE to suspend exports of Indian wheat for four months."

The statement has been clearly misinterpreted and the UAE has only decided to suspend the re-export of wheat and flour from the grain originating in India. This is in reality only an assurance that UAE will use whatever wheat it imports only for domestic purposes.

Sources tell OneIndia that the ban is on the re-export. This is a decision that was taken to stop Indian wheat from being re-sold for a period of four months. This would mean that the Indian wheat that is sold to the UAE will not be used for any other purpose other than domestic consumption.

The moratorium has it has been termed by the UAE government is in effect from June 13. The decision was taken in view of the international developments which have affected trade flows across the globe.

On May 14, India had banned the export of wheat except for those backed by already issued letter of credit. Those countries seeking to ensure food security were also exempt from this ban. Since the decision of May 14, India has allowed shipments of 469,202 tonnes of wheat.

The source cited above also said that India wants to ensure that the wheat that is being exported to UAE should be consumed locally and it should not go out to other countries. India also has kept in mind the large Indian migrant work force and this decision should also benefit them.

In 2021-22, India has exported 4.71 lakh tonnes of wheat to the UAE and the same was valued at $136.53 million. Over 50 per cent of the wheat imports for the UAE are from Russia, Canada and Ukraine. In 2021-22, India became a key supplier to the UAE exporting 1.88 Lt. While the exports rose further in the following months, the decision to export wheat was taken in view of the Russia-Ukraine war which disrupted shipments from the Black Sea Ports.

While imposing the decision, UAE said that the ban applies to all wheat varieties namely hard, soft, ordinary wheat flour. The moratorium has been imposed on the export and re-export of wheat and wheat flour originating from the Republic of India, including free zones for a period of four months starting from May 13 2022.

However companies wishing to export or 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 government to obtain permission to export outside of the UAE, a statement from the UAE ministry said.

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, the ministry also said.

The UAE took the decision in view of the International developments that have impacted trade flow and also the solid and strategic relations that bind UAE and India especially after the Comprehensive Economic Partnership Agreement between the two countries and also the approval by the Indian government to export wheat to the UAE for domestic consumption.