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India allows limited exports of rice, wheat, sugar, onion to Maldives despite tensions

The Centre has reportedly cleared the supply of several essential commodities to the Maldives, including food items such as rice, wheat and onions whose exports are currently banned due to strained relationship between the two neighbouring countries.

India, known for being a major exporter of rice, sugar, and onions, had previously imposed restrictions on the export of these food items. The step was taken before the upcoming Lok Sabha elections in an effort to maintain stability in local prices, India Today reported.

In a statement by the Indian high commission in Male, the Narendra Modi-led government allowed the export of these commodities for 2024-25 under a bilateral mechanism at the request of the Maldivian government. The approved quantities are also the highest since the mechanism was put in place in 1981.

India will supply one million tonnes each of river sand and stone aggregates to the Maldives during 2024-25. It will supply 35,749 tonnes of onions, 124,218 tonnes of rice, 109,162 tonnes of wheat and 64,494 tonnes of sugar during this period, it said.

The notification stated that shipments of these commodities to the Maldives during the 2024/25 financial year, which commenced on April 1, would not be subject to any present or future export restrictions or prohibitions.

Shipments of these commodities in the FY25 which started on April 1 to the Maldives “will be exempted from any existing or future restriction/prohibition on export,” said the government in a notification.

“The quota for river sand and stone aggregates, crucial items for the booming construction industry in the Maldives, have been increased by 25% to 1,000 MT. There has also been an increase of 5% in the quotas for eggs, potatoes, onions, sugar, rice, wheat flour and dal (pulses),” the statement said.

India implemented export bans on wheat in May 2022, non-basmati rice in July 2023, and onions in December. Despite this, India selectively supplied these commodities to neighbouring countries like Bangladesh and key partners such as the UAE and Indonesia based on specific cases, prioritising domestic needs.

The statement noted that India continued supplying rice, sugar and onions to the Maldives last year despite a ban on exporting these items. “India remains strongly committed to supporting human-centric development in the Maldives, as part of its ‘Neighbourhood First’ policy,” it said.

Recently, without naming India, Muizzu said he intends to reduce the Maldives’ dependence on any one country for food security. He also said all Indian troops stationed in the country will be withdrawn by May 10. He said the withdrawal process is already underway.

In keeping with a demand by Muizzu, India has also begun replacing some 80 military personnel deployed in the Maldives to operate three aircraft with civilian personnel. The aircraft are mainly used for humanitarian assistance operations and medical evacuations.

Source Link: https://www.businesstoday.in/latest/world/story/india-allows-limited-exports-of-rice-wheat-sugar-onion-to-maldives-despite-tensions-424515-2024-04-05

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