UAE’s economy ministry cited “interruptions to global trade flows” as the reason for the suspension.
Dubai: The United Arab Emirates (UAE) on Wednesday ordered a suspension in exports and re-exports of wheat and wheat flour originating from India for four months. India is the world’s second biggest producer of wheat grains.
UAE’s economy ministry cited “interruptions to global trade flows” as the reason for the suspension and added that India had approved exports of wheat to the UAE for domestic consumption.
India had banned wheat exports on May 14, except for those already having letters of credit (LCs) and to countries seeking to ensure food security.
India’s Directorate General of Foreign Trade on May 31 had directed the regional authorities to physically verify all documents of applicants for export of wheat before issuing Registration Certificates (RCs). The order was issued to ensure that the exporters are not issued RCs based on improper documents, said officials.
The Indian Ministry of Commerce and Industry had said, “In order to plug the loophole, it has been decided that Regional Authorities will do a physical verification of all Letters of Credit, whether already approved or under process. Wherever necessary, help of a professional agency may be taken for such verification.”
The Government of India had on May 13 restricted wheat exports to manage the overall food security situation in India and to support the needs of neighbouring and vulnerable countries that are adversely affected by the sudden changes in the global market for wheat and are unable to access adequate wheat supplies.
After criticism from across the world and also in India, the Government of India had announced some relaxation to its May 13 order issued by the Directorate General of Foreign Trade (DGFT), Department of Commerce on restricting wheat exports.