UAE food importers successfully replace wheat supplies from India

  • Date: 15-Mar-2023
  • Source: Gulf News
  • Sector:Agriculture
  • Country:UAE
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UAE food importers successfully replace wheat supplies from India

Dubai: UAE food commodity importers have successfully overcome the loss of Indian wheat supplies through timely sourcing arrangements with other countries, including Australia, Canada, and through ‘Black Sea routes’ from Ukraine. This has ensured that after an initial surge in wheat prices since early March last year, following the start of the Russia-Ukraine crisis, the UAE’s food prices remained within range, although at higher levels than in recent years. Now, the chances are that imported wheat prices could drop further. Much will depend on how smoothly negotiations to extend the agreement to keep Black Sea routes from Ukraine open progresses. (Russia’s offer is for a 60-day extension, while Ukraine wants a repeat of the 120-day arrangement. Ukraine is one of the biggest suppliers of wheat in the world and it was the start of the conflict that led to the sudden spike in food prices, and which added to the already heavy inflationary pressures worldwide.) Wheat prices have gone by more than 40 per cent since March 2022. If the Black Sea deal holds and food import prices do drop further, consumers in the UAE would have some relief on their spending. Plus, it would also help F&B businesses, which