India has lifted export restrictions on specific quantities of essential commodities for the Maldives during the current fiscal year amid strained ties between two countries.
The Directorate General of Foreign Trade (DGFT) announced that items like eggs, potatoes, onions, rice, wheat flour, sugar, dal, stone aggregate, and river sand can now be exported to the Maldives as per the bilateral trade agreement for 2024-25.
This move allows for the export of these goods without any existing or future restrictions or prohibitions.
“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.
The permitted quantities for export include 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). CAPEXIL will oversee the exports of river sand and stone aggregate to ensure compliance with environmental regulations, including obtaining necessary clearances from state authorities.
Indian High Commissioner announced on social media that these exports are part of a unique bilateral mechanism, with quotas for each item being increased to the highest levels since 1981. This development comes amidst strained relations between India and the Maldives, following demands for the withdrawal of Indian military troops and controversial comments made by Maldivian officials.
Under the 1981 trade agreement, India has emerged as a key trade partner for the Maldives, with a significant increase in trade volume in recent years. The current announcement also includes a 5% increase in quotas for eggs, potatoes, onions, sugar, rice, wheat flour, and dal.
The quota for river sand and stone aggregates, crucial for the Maldives’ construction industry, has been raised by 25% to meet the growing demand. Due to limited local resources, the Maldives relies on imports for these materials.