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Why UAE Banned export of Indian Wheat?

Why UAE Banned export of Indian Wheat?

The UAE Ministry of Economy has ordered the suspension of exports and re-exports of wheat and wheat flour originating in India for a period of four months, state news agency WAM said on Wednesday.

The United Arab Emirates Ministry of Economy explained that this decision comes in view of international events that have affected trade flows and in recognition of the strong and strategic relations that unite the United Arab Emirates and India, especially after the signing of the Comprehensive Economic Association Agreement between the two countries and the approval of the Indian government to export wheat to the United Arab Emirates for domestic consumption.

The Ministry said that companies wishing to export/re-export wheat varieties and wheat flour of Indian origin, which were imported into the country before May 13, must apply to the Ministry for permission to export outside the UAE. They must present all the documents and files that help to verify the data of the shipment regarding its origin, date of the transaction and any other document that the Secretariat requires in this regard.

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The Ministry also indicated that in the case of wheat and wheat flour products of non-Indian origin, companies wishing to export/re-export can do so after applying to the Ministry for permission to export out of the country. This request must also be supported by all the documents and files that help verify the origin of the shipment to be exported/re-exported.

India banned wheat exports on May 14, except those backed by letters of credit (LCs) already issued and to countries seeking to ensure food security. Since then, it has allowed shipments of 469,202 tons of wheat.

Companies that want to export or re-export Indian wheat brought to the UAE before May 13, when India’s suspension began, must first apply to the Ministry of Economy, he said in a statement.

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The United Arab Emirates and India signed a sweeping trade and investment pact in February that seeks to reduce all tariffs on each other’s goods and aims to increase their annual trade to $100 billion within five years.

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