New Delhi/Male: Despite strained relations, upon the request of the Government of Maldives, the Government of India has allowed for export of certain quantities of essential commodities for the year 2024-25 under a unique bilateral mechanism, wherein, the quotas for each of these items have been revised upwards, the Indian High Commission in Male said on Friday.
The approved quantities are the highest since this arrangement came into effect in 1981. The quota for river sand and stone aggregates, crucial items for the booming construction industry in the Maldives, have been increased by 25% to 1,000,000 MT. There has also been an increase of 5% in the quotas for eggs, potatoes, onions, sugar, rice, wheat flour and dal (pulses), the Indian high commission said.
Last year as well, India continued export of rice, sugar and onions to the Maldives in spite of a worldwide ban on export of these items from India. India remains strongly committed to supporting human centric development in the Maldives, as part of its 'Neighbourhood First' policy.
India, a leading exporter of rice, sugar and onions, has imposed various curbs on exports of these food commodities to keep a lid on local prices ahead of the general election.
Shipments of these commodities in the 2024/25 financial year which started on April 1 to Maldives "will be exempted from any existing or future restriction/prohibition on export," the government said in a notification.
The Directorate General of Foreign Trade (DGFT) in a notification said these exports have been permitted to Maldives under the bilateral trade agreement between countries during 2024-25.
"Export of eggs, potatoes, onions, rice, wheat flour, sugar, dal, stone aggregate and river sand has been permitted to the Maldives... The export of these items to Maldives will be exempted from any existing or future restriction/prohibition on export," the DGFT said.
In general, there is either a restriction or prohibition on exports of these goods. The specified quantity allowed includes potatoes (21,513.08 tonnes), onions (35,749.13 tonnes), rice (1,24,218.36 tonnes), wheat flour (1,09,162.96 tonnes), sugar (64,494.33 tonnes), dal (224.48 tonnes), stone aggregate (one million tonnes) and river sand (one million tonnes).
It said that for the exports of river sand and stone aggregate, CAPEXIL (a body to promote the export of chemical and allied products) will ensure that the suppliers/extractors have obtained appropriate clearances and mining of the sand is not undertaken in the coastal regulation zone area, which is prohibited under the coastal regulation zone notification.
Surrounded by the ocean, the islands in the Maldives and the many atolls don't have enough river sand to support their construction industry, hence the need for importing sand and stone aggregates to the country. The bilateral trade between the two countries has increased to USD 973.37 million in 2022-23 from about USD 740 million in 2021-22. (with agency inputs)
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