The United Arab Emirates has recently imposed a temporary ban on the export and re-export of rice. This suspension, which began today, will be in effect for a period of four months. Moreover, unless a decision is made to lift the ban, it will automatically renew.
The Ministry of Economy made this announcement with the aim of maintaining sufficient supply levels within the UAE.
The ban on rice export and re-export was enacted under Ministerial Resolution No. (120) of 2023.
From July 20 onwards, rice imported from India into the UAE will not be allowed for export or re-export during this ban.
The prohibition encompasses all varieties of rice.
•Husked white rice
•Husked brown rice
•Broken rice
•Parboiled rice
As part of the rice export ban, freezones are now included in the restriction. Any business seeking to re-export rice from the UAE must obtain a special export permit from the Ministry of Economy. This permit application will require documentation, such as shipment data, point of origin, transaction date, and other relevant information.
The export permits, if approved, will have a validity period of 30 days. Before processing exports, these permits must be electronically submitted to customs.
It’s worth noting that the ban applies not only to rice originating from India but also from other countries.
This development comes after India’s decision to ban the export of non-basmati rice to manage domestic prices. However, analysts fear that such actions might lead to inflation in global food markets, given India’s substantial contribution to worldwide rice exports, accounting for about half of the grain’s global shipments.
India has been a significant supplier of non-basmati rice to Middle Eastern countries like Saudi Arabia and the UAE. The recent ban on non-basmati white rice was due to a rise in retail rice prices following heavy monsoon rains that damaged crops.
With India being responsible for over 40 percent of the world’s rice exports and limited inventories in other exporting countries, any reduction in shipments could further impact food prices already influenced by factors like Russia’s previous invasion of Ukraine and unpredictable weather conditions.