The United Arab Emirates (UAE) has suspended the exports and re-exports of wheat and wheat flour originating from India. One of the fastest-growing trade partners of India, the Gulf nation, has ordered a four-month suspension, state news agency WAM said on Wednesday.
UAE’s economy ministry cited “interruptions to global trade flows” as the reason for its move. However, it also said that India had approved wheat exports to the UAE for domestic consumption.
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India banned wheat exports on May 14, except for those backed by already-issued letters of credit (LCs) and countries seeking to ensure food security. Since then, the world’s second-biggest grain producer has allowed shipments of 469,202 tons of wheat.
Companies wishing to export or re-export Indian wheat brought into the UAE before May 13, when India’s suspension began, must first apply to the economy ministry, it said in a statement.
In February, the UAE and India signed a pact called the Comprehensive Economic Partnership Trade Agreement (CEPA). The agreement seeks to cut all tariffs on each other’s goods and aims to increase their annual trade to $100 billion within five years.
