Monthly plan to access Budget

Journalism of Courage
Advertisement
Premium

Explained: Why the UAE has ‘suspended’ re-export of Indian wheat-milling

"India doesn't want its wheat exported to Dubai or Abu Dhabi to go out to other countries, whether as grain or flour. It would want that wheat to be consumed locally, including the migrant Indian workers in UAE," trade sources told The Indian Express.

India exported 4.71 lakh tonnes (lt) of wheat valued at $136.53 million to the UAE in 2021-22. (File/Representational)

The United Arab Emirates’ decision, reported on Wednesday (June 15), to “suspend” re-export of wheat and flour from grain originating in India is basically an assurance that whatever it imports will be used only for domestic consumption.

“India doesn’t want its wheat exported to Dubai or Abu Dhabi to go out to other countries, whether as grain or flour. It would want that wheat to be consumed locally, including the migrant Indian workers in UAE,” trade sources told The Indian Express.

This will, in turn, allow India to provide an exception to its wheat export ban and ship out some quantities to the Gulf federation. India, on May 14, banned export of all wheat, except against outstanding contracts backed by already-issued letters of credit and to countries on case-to-case food security considerations.

India exported 4.71 lakh tonnes (lt) of wheat valued at $136.53 million to the UAE in 2021-22. That constituted about 6.5 per cent of its total 72.35 lt shipments of the cereal worth $2,120.27 million last fiscal.

Subscriber Only Stories

While the quantities exported may not be that big for India, they aren’t small for UAE. The US Department of Agriculture has estimated UAE’s annual wheat consumption, which is entirely imported, at 15 lt. The wheat-milling capacity is higher, at 16.7 lt, which is driven both by local consumption and re-export of flour sold to Saudi Arabia, Bahrain, Jordan, Ethiopia, Taiwan and Philippines. Such exports amount to about 1 lt annually.

More than 50 per cent of UAE’s wheat imports are from Russia, followed by Canada, Ukraine and Australia. From 2020-21, India also emerged as a key supplier, exporting 1.88 lt to the Gulf federation. Exports rose further in 2021-22, before the export ban decision that came on top of the Russia-Ukraine war, which has disrupted shipments from the Black Sea ports.

The trade sources pointed out that the global wheat supply situation should ease somewhat, with the harvesting and market arrivals of Russian and Ukrainian wheat from July. The USDA has projected Ukraine’s wheat exports to nearly halve to 10 million tonnes (mt) in 2022-23, from 19 mt in 2021-22. However, it expects a substantial jump in Russia’s exports, from 33 mt in 2021-22 to a record 40 mt in the new marketing year.

First published on: 15-06-2022 at 20:11 IST
  • 0
Next Story

Explained: ‘Temporary visitors’ and ‘migrants’ — how they moved during the pandemic

Tags:
  • Explained india DO NOT USE UAE wheat export ban wheat exports
Home
ePaper
Next Story
close
Express PremiumAndhra’s Guaranteed Pension Scheme model catches the attention of Centre
X