Why did the United Arab Emirates (UAE) has ordered a four-month suspension of wheat and flour exports and re-exports from India
Why did the United Arab Emirates (UAE) has ordered a four-month suspension of wheat and flour exports and re-exports from India
The United Arab Emirates (UAE) has ordered a four-month suspension of exports and re-exports of wheat and flour from India, the world’s second-largest grain producer WAM, a state news agency said on Wednesday. The Gulf countries’ economic affairs ministry cited instability in global trade flows as the reason for the move but added that India had approved wheat exports to the UAE for domestic consumption. country.
India banned wheat exports on May 14, except for wheat exports secured by Letters of Credit (LCs) which have been issued to countries seeking food security. Since then, 469,202 tonnes of wheat have been approved for shipment. Companies wishing to export or re-export Indian wheat imported into the UAE before May 13, when India began the suspension, must first apply to the Ministry of Economy, according to the statement.
In February, the United Arab Emirates and India signed a drastic trade-investment agreement aimed at reducing tariffs on each other’s commodities and raising annual trade value to $ 100 billion within five years.
Known as the Regional Comprehensive Economic Partnership Trade Agreement (CEPA), the agreement came into effect on May 1. The UAE’s decision to “suspend” the re-export of wheat and flour made from grains, was announced on Wednesday (June 15). In India, there is a guarantee that everything imported will only be used for domestic consumption. “India does not want wheat exported to Dubai or Abu Dhabi to be exported to other countries, whether grain or flour.
Wheat, including Indian immigrant workers in the Arab Emirates. I want to consume it locally. ” This will allow India to grant an exemption from the wheat export ban and supply some quantity to the Gulf Federation. On May 14, India banned all wheat exports, except for unpaid contracts backed by letters of credit already issued.
From 2021 to 2010, India exported 471,000 tonnes (lt) of wheat worth the US $ 136.53 million to the United Arab Emirates. This accounted for about 6.5% of last year’s total grain shipments of $ 2,120.27 million, or 72.35 litres. In the case of India, exports may not be very high, but in the UAE, they are not small. The USDA estimates UAE’s annual wheat consumption. These are all imported and are 15 litres.
Due to both local consumption and re-export of wheat sold in Saudi Arabia, Bahrain, Jordan, Ethiopia, Taiwan and the Philippines, the production capacity of wheat factories has increased to 16.7 lt. The value of these exports is about 1 litre per year. More than 50% of United Arab Emirates wheat imports come from Russia, followed by Canada, Ukraine and Australia. From 2020 to 21 India also emerged as a major supplier, exporting 1.88 litres to the Gulf Federation. Exports continued to increase from 2021 to 22 before a decision was made to ban exports following the war between Russia and Ukraine, which disrupted supply from the Black Sea ports.
Trade sources pointed out that the harvest and launch of Russian and Ukrainian wheat, which begins in July, should ease the world’s wheat supply somewhat. The USDA predicts that Ukraine’s wheat exports will almost halve from 19 million tonnes in 2021-22 to 10 million tonnes (mt) in 2022-23. However, Russia’s exports are expected to grow significantly from 33 million tonnes from 2021 to 2010 to a record high of 40 million tonnes in the new marketing year. Amid the global wheat shortage caused by the war between Russia and Ukraine, countries have taken various steps to protect the food security of their people.
As part of these measures, the UAE in the Gulf countries has decided not to re-export wheat imported from India. However, NDTV decided to add a twist to the news and reported that the UAE had banned wheat imports from India. NDTV India has released a tweet called “Bharatse Ghenhunehimangayega UAE” which means “UAE does not import wheat from India”.
This completely false allegation is used in the tweet, but the linked report approved India’s export of wheat to the UAE for domestic consumption, and the UAE banned India’s wheat re-export. It states. NDTV English did not use such blatantly inaccurate text, but its heading was also a bit confusing, and many believe that the UAE has taken some disciplinary action against India. did.
Here are her tweets and captions: “UAE will suspend India’s wheat exports for four months: Report.” As a result, many Muslims and “liberals” say the UAE has banned wheat exports to India, or perhaps the UAE is buying wheat from India, the world’s second-largest wheat-producing country. I was delighted not to read the details of the assumed decision setting.
The NDTV report was based on the Reuters report. Several Gulf states have issued statements condemning comments on former BJP spokesman Nupur Sharma’s prophet Mohammed, and Muslims and left-libertarians have assumed that the UAE has made some progress on this issue. Some of the tweets targeting the Government of India were deleted after the original contributor (OP) realized that they were fooling themselves, but here are some of the gems we found.
Indicates. In a deleted tweet, actress Richa Chadha said, “Welcome to the international economic consequences of hatred.”
Chada posted the tweet without reading the report, but she deleted it in response to a backlash from the netizens. Chada is a kneeling reaction, and the news is simple to mean that one of the Gulf nations has just done something to undermine India’s economic interests, and Islamists and left-wing liberals continue to dream. I was expecting.
Writer Harnito Singh wrote, “When will the bulldozer be sent there?” She probably later realized her mistake and deleted her tweet, but she was too late by then. In one of her follow-up tweets, she said: Maria. Tweet Delete KarDiya. peace. (I made a mistake. I admit. I deleted the tweet). “
“In the next few days, India will be like Sri Lanka,” said one Twitter user, Salmank004.
Twitter user Aanuup said in Hindi: “Show Vishwaguru this tweet”. Vishwaguru is the term of Prime Minister Narendra Modi. Another Twitter user, Sheikh Zafar, said “the impact of the fringe factor” and didn’t know exactly what the report was. Twitter user Japnit Singh said, “Hamare diplomatic relations Kaa satyanaas krke maanenge lagta h (they will completely ruin our foreign relations).”I’m not sure. Another Twitter user, iambossr, thanks PM Modi and MEADr. The irony of India’s foreign policy, Jaishankar said, “Thanks to Modi Ji and Dr India, who completely ignored Twitter users, playing no role in UAE export policy to other countries. . Twitter user Nomezawa said: Open your eyes before it`s too late.”
The UAE has banned the re-exports of Indian wheat to other countries as it wants to keep its reserves from now on. . The department said the ban applies from May 13, 2022, to all types of (spelt) wheat, namely durum, regular and soft wheat, and wheat flour (wheat flour). . He further explained that companies wishing to export or re-export Indian-origin wheat and flour imported into the country before May 13 will need permission to export this wheat outside. UAE.
The decision was made based on international developments that have affected trade flows. He added, “In recognition of the strong and strategic relationship that binds the UAE and India, especially after the signing of the Comprehensive Economic Partnership Agreement between the two countries and the Indian government confirming the ‘export of wheat exports to the United Arab Emirates for domestic consumption.
The decision of the UAE comes in the context of India’s decision to ban wheat exports, because some countries, including China, were found to be hoarding Indian wheat to control prices, the dong and the US dollar. likely to reduce production in the near future. many years. Season. However, India still exports wheat to countries in demand.
GoI announced a ban on May 13th, but conditionally eased exports on May 17th. Therefore, India currently permits the export of wheat for domestic consumption in various countries but does not permit the use of wheat for speculative and price-fixing practices. Contrary to what Islamists and “liberals” wanted, the UAE’s decision does not affect relations with India or the economic interests of India. This shows that the UAE has accepted India’s requirement to use Indian wheat only for domestic consumption and not for further exports at higher prices and not for further exports at higher prices.
edited and proofread by nikita sharma
