Experts: A decision that supports food security and contributes to stabilizing the prices of many commodities in the market

Suspension of the export and “re-export” of wheat of Indian origin for 4 months

• Wheat is a very important strategic commodity.

  Reuters

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 The Ministry of Economy issued Ministerial Resolution No. 72 of 2022, stipulating the suspension of the export and re-export of wheat and wheat flour of India origin, including free zones, for a period of four months starting from May 13, 2022.

Economists said that the decision supports food security, targets the availability of wheat, and the absence of a shortage in the quantities imported from it during the coming period, and contributes to stabilizing the prices of many commodities in the market.

The experts called for supporting the state's ability to locally manufacture many food industries that depend on wheat as a major component.

export halt

In detail, the Ministry of Economy issued Ministerial Resolution No. 72 of 2022, stipulating the suspension of the export and re-export of wheat and wheat flour of India origin, including free zones, for a period of four months, starting from May 13, 2022, and the decision applies to all types of wheat ( Wheat), which is: durum, ordinary, fine wheat, and on wheat flour (wheat flour).

export permission

The ministry stated that companies wishing to export or re-export the wheat and wheat flour varieties of Indian origin, which are described in the decision, and which were imported into the country before the date of May 13, 2022, must submit an application to the ministry to obtain an export permit outside the country, providing the documents and documents that It helps verify the data related to the shipment to be exported in terms of origin, the date of the transaction, and any other requirements that the Ministry may require in this regard.

The ministry also indicated that with regard to wheat and wheat flour products of non-Indian origin, companies wishing to export or re-export them can do so after submitting an application to the ministry to obtain an export permit outside the country, and the request is supported by all documents and documents that help verify From the origin of the shipment to be exported or re-exported.

Permission validity

The ministry pointed out that the export permit issued to companies is valid for a period of 30 days from the date of issuance, and must be submitted to the concerned customs department in order to complete the procedures for exporting the shipment outside the country, while the request is submitted to the ministry through the email antidumping@economy.ae or submitting directly at the Ministry headquarters.

The Ministry of Economy explained that this decision comes in consideration of the international developments that affected the flow of trade, and in appreciation of the solid and strategic relations between the UAE and India, especially after the signing of the Comprehensive Economic Partnership Agreement between the two countries, and the approval of the Government of India to export wheat to the country, with the aim of domestic consumption.

Food security

In addition, the economic expert, Ahmed Al-Darmaki, said that the decision supports food security, which is a major trend of the state and government leadership, especially during the current period, and in light of the difficult international circumstances the world is going through.

He explained that the decision targets the availability of wheat, and the absence of a shortage in the quantities imported from it during the coming period. It also contributes to the stability of the prices of many commodities in the market, and prevents large price increases, especially since wheat is one of the raw materials that enter into many major food industries.

Al-Darmaki called for working to support judicial police, tighten control and control the market, to support the provision of goods at reasonable prices.

positive decision

For his part, the retail affairs expert, head of Al Bahar Consulting Company, Ibrahim Al-Bahr, described the decision as positive, which comes at an appropriate time, as it contributes to supporting the availability of wheat, which is included in many major food industries.

He stressed that this greatly supports the availability of many major food commodities, and the stability of commodity prices, of which wheat is a major component, calling for investing the availability of wheat to support the state's ability to locally manufacture many food industries that depend on wheat as a major component.

He pointed out that the decision is the UAE's respect for its agreements with India, and India's great appreciation for the UAE, as India pledged to continue exporting to the UAE, despite the presence of a significant shortage in its own supplies, as well as India's approval to export wheat to the country for local consumption.

strategic commodity

In the same context, the general manager of "Truth Economic Consulting Company", Reda Muslim, said that the decision prevents a surge in the prices of many commodities during the coming period, due to the shortage of wheat globally, and also supports the presence of a strong stockpile of it that was imported at old prices.

He pointed out that wheat is a very important strategic commodity, as it is included in the production of up to 50% of the main food commodities.

Muslim explained that the preferential advantage available to the UAE in importing wheat from India, especially with the signing of the partnership agreement between the two countries, should be invested in establishing a chain of factories and strong local food industries.

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