Lagatar24 Desk
Dubai, June 15: The United Arab Emirates (UAE) has placed a four-month ban on wheat and wheat flour exports and re-exports from India, the world’s second-largest producer of the grain, according to state news agency WAM.
The UAE’s economy ministry said the move was motivated by disruptions in global trade flows, but that India had permitted wheat exports to the UAE for local consumption.
On May 14, India banned wheat exports, with the exception of those guaranteed by letters of credit (LCs) already given and to countries striving to assure food security. It has approved the export of 469,202 tonnes of wheat since then.
Companies intending to export or re-export Indian wheat brought into the UAE before to May 13, when India’s embargo took effect, must first apply to the economy ministry, according to a statement.
In February, the UAE and India struck a wide trade and investment agreement with the goal of lowering all tariffs on each other’s goods and increasing annual trade to $100 billion in five years.
The Comprehensive Economic Partnership Trade Agreement (CEPA), as it is known, went into effect on May 1.
