Agthia will work with UAE government officials to find a way out of India's wheat ban impasse. Image Credit: REUTERS

Dubai: Agthia Group intends to work alongside government officials from the UAE to ensure wheat supplies despite India’s export ban. India has been a primary source of Agthia’s wheat over the last 18 to 20 months, CEO Alan Smith said.

The ban has exacerbated an already-tight market for the grain. Global prices surged after Russia’s attack on Ukraine, a key wheat grower, and the Indian government has said it needed to halt shipments to protect food security.

However, the country will allow shipments for food security needs based on requests from governments. “We’ll see how we can work with the Indian government and the UAE government to make sure we continue to ensure availability in the business,” said Smith.

The Abu Dhabi-based company decided in March to sign longer-term supply agreements for foodstuff. It is covered for supplies until about August or September, Smith said.

Some relaxation
India is allowing "some relaxation" of its order restricting wheat exports to allow traders to meet prior commitments, according to the trade ministry. Wheat futures dropped as much as 3.8 per cent in Chicago.
Wheat export consignments that have been handed over to customs for examination, and registered in their systems on or before May 13, will be cleared for export, the ministry said in a statement on Tuesday.

The government has also given the green light for a wheat consignment to sail for Egypt following a request from that government, it said. This was already loading at Kandla port and totals 61,500 tons, it said.