Although India’s embargo on all imports of the food staple, the UAE – and Saudi Arabia – have been assured of sufficient wheat exports, providing significant relief to consumers and shopkeepers here.
“The two big entities in the UAE handling imports of wheat from India have given reassurances of steady supplies – and that’s all we wanted to hear,” said a top official at one of the leading foodstuff retailers in the UAE. “It would have been a significant blow if we had to look elsewhere to make up for the loss in supplies from India.”
India’s decision on banning exports of wheat came as part of its need to secure food supplies for its own domestic requirements. Wheat prices globally had shot up after the launch of hostilities in Ukraine, which had been among the top producers and suppliers of wheat to the world market. Other foods and beverage essentials too have been seeing price inflation from a variety of factors, including the disruptions to supply chains.
This is when India took the decision to halt wheat exports – but with certain provisos in place. According to Sudhakar Tomar, President of India Middle India East Agro Trade Industry & Investment Forum. “The Indian government stated that wheat exports will still be authorized on a selective basis to address the food security needs of friendly nations depending on their governments’ requests. These governments can register their requirements with the Indian authorities as soon as possible to keep the supply chain open.
“When it comes to Asia and the Middle East, apart from India and Australia, most countries rely on imported wheat and are vulnerable to rising global wheat prices, even if they do not import directly from India.”
Global wheat prices rocketed following the Russia-Ukraine war, with these countries accounting for more than 25 percent of global wheat exports. The Indian government ‘defended its decision to ban exports to protect domestic food security due to reduced wheat crop size, lower than usual procurement of wheat under central government programs, and high fertilizer costs,” according to Tomar.
While market sources confirm that wheat exports from India to the UAE and Saudi Arabia will happen, foodstuff and supermarket retailers with a presence in the other Gulf markets face a problem. India is yet to confirm the availability of the same to the other Gulf markets.
“India exported around 187,949.46 tonnes of whole wheat to UAE in 2020-21,” said Dr. Dhananjay Datar, Chairman and Managing Director of Al Adil Trading, the specialty retailer of Indian food commodities and spices. “When it comes to exports of whole wheat, UAE is third after Bangladesh and Nepal. I would say the issue of wheat supply from India is yet to be sorted out. We are awaiting the latest notifications.”