UAE suspends exports and re-exports of Indian wheat for four months

The move follows India banning the export of wheat last month to check the surge in local prices.

The UAE has ordered a suspension of exports and re-exports of wheat and wheat flour originating from India for four months, the Gulf nation's ministry of economy said on Wednesday.

The move follows India banning the export of wheat last month to check the surge in local prices. With this, Indian wheat cannot be rooted to third countries via the UAE.

The ban, which the ministry called as 'moratorium', has been imposed effective from May 13 "in view of the international developments that have affected trade flows".

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

The United Arab Emirates Ministry of Economy said the ban "applies to all wheat varieties namely hard, ordinary and soft wheat and wheat flour." In a statement said 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, for a period of four months starting from May 13, 2022."

This "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 between the two countries and the Indian government's approval to export wheat to the UAE for domestic consumption."

India and UAE had in February signed the Comprehensive Economic Partnership Trade Agreement (CEPA) to cut all tariffs on each other's goods and aims to increase their annual trade to USD 100 billion within five years.