UAE’s ban on export, re-export of Indian wheat will stabilise prices

Decision will improve supply, stabilise rates in local market, say retailers



File photo
File photo
by

Waheed Abbas

Published: Wed 15 Jun 2022, 4:47 PM

The UAE’s decision to ban the export and re-export of wheat and wheat flour originating from India will ensure sustainable supply and help stabilise prices of the commodity in the country, retailers said on Wednesday.

Starting from May 13, 2022, the UAE's Ministry of Economy imposed a moratorium on wheat and wheat flour originating from India for four months.

Importantly, stable wheat prices will also help producers to maintain the prices of products made from wheat including bread, cereal, flour, pasta and many other related food items.

Dr Dhananjay Datar, chairman and managing director of Al Adil Trading, said as a result of the export ban, the prices of wheat will definitely not go up and stabilise at the current levels in the country.

“The decision will benefit the consumers in the UAE. The prices will come down if there is more supply of wheat to the UAE. With the supply that already exists in the market, the price will remain stable,” he said.

As reported by Khaleej Times earlier, local wheat flour prices increased by up to 15 per cent after India imposed a ban on wheat on May 14 due to a jump in domestic prices after curtailed output in the South Asian country as well as the war between Ukraine and Russia – world’s top wheat exporters.

Kamal Vachani, group director and partner of Al Maya Group, said the ministry’s decision will definitely benefit the UAE as there will be a sufficient supply of quality wheat for local consumption.

“There will be no shortage after the ban on export and re-export of wheat. The consumer will benefit because prices will not increase and the supply of the wheat will be maintained. The government is doing a great job in maintaining the quality and quantity of the commodities,” said Vachani.

Following the Comprehensive Economic Partnership Agreement (Cepa) signed between the UAE and India, New Delhi approved the export of wheat to the UAE for domestic consumption.

The UAE’s Ministry of Economy explained that the companies who want to export/re-export wheat and wheat flour varieties of Indian origin, which were imported before May 13, must seek permission to export the commodity.

The firms need to submit all documents and files that help verify the data regarding the shipment in terms of its origin, date of transaction, and any other documents that the Ministry may require in this regard, it said.

The Ministry also indicated that 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 export permit is valid for 30 days from the date of issuance.

ALSO READ:


More news from UAE