It can be noted that the UAE serves as a regional hub for the re-export of Indian food grains into some other Gulf and North African nations.
A temporary ban on rice exports and re-exports from the UAE was announced on Friday amid reports of a disruption in the supply of rice from India as a result of the export ban on non-basmati rice.
Changes In UAE’s Rice Export Policy
According to the Ministry of Economy, the suspension will last for four months. It also stated that the ban is part of efforts to ensure adequate rice supply in the local market.
The decision included a restriction on the export and re-export of rice from India that was brought into the nation, including free zones, after 20th July, 2023 when India brought in restrictions on the export of non-basmati white rice.
The Indian Government placed restrictions to bring down domestic prices and ensure availability due to a subpower harvest this season as a result of erratic weather during the monsoon season and also to defend against the repercussions in the global market after Russia pulled out of the UN backed Black Sea Grain deal.
India UAE Rice Trade
With 55.4 million metric tons of rice exported last year, India was one of the top exporters, accounting for more than 40% of all rice exports. For UAE importers, India is one of the main countries from which to source rice. The largest consumer group for Indian non-basmati rice comes from Telangana and Andhra Pradesh NRIs.
The Telugu diaspora prefers the Sona Masoori variety of rice, which is primarily grown in Telangana and is thought to be of the highest quality among non-basmati varieties. M. Ramesh, a native of the Kamareddy district and a well-known rice trader in Dubai, welcomed the ban and predicted that it would stabilize the prices and supplies in the local market.
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