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India agrees to supply essential commodities to Maldives under 'unique bilateral mechanism'

India had imposed restrictions on the export of these food products in order to control domestic inflation. However, it has kept a window open for limited exports of these goods to help friendly countries in dire need.

Shashwat Bhandari Edited By: Shashwat Bhandari @ShashBhandari New Delhi Updated on: April 06, 2024 9:32 IST
Representational image
Image Source : REUTERS Representational image

India has agreed to supply essential commodities to Maldives after the island nation's request. The government will export certain quantities of essential commodities including eggs, potatoes, onions, rice, wheat, flour, sugar, dal, stone aggregate and river sand to Maldives during 2024-2025 under the bilateral trade agreement between the Government of India and the Government of Maldives.

Export of these items shall be exempted from any existing or future restriction/prohibition during 2024-25 period.

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).

For the export of the above quantity of River Sand and Stone Aggregate, CAPEXIL shall 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.

Export of River Sand and Stone Aggregate will be allowed subject to the exporter obtaining necessary environmental clearances/No Objection Certificate from the designated nodal authority of respective State Governments from where the River Sand is obtained.

This permission will also be subject to any State legislation/judicial orders relating to mining of 'River Sand' and 'Stone Aggregate".

Maldives to get essential commodities under unique bilateral mechanism

Through a post on social media platform X, the Indian High Commissioner said that this was being done "under a unique bilateral mechanism" under which the quotas for each of these items have been revised upwards.

"The approved quantities are the highest since this arrangement came into effect in 1981," the notice by the mission said.

Move amid India-Maldives diplomatic row

The announcement comes amid a diplomatic row between the two countries since November last year when President Mohamed Muizzu, known for his pro-China leanings, took the oath, and within hours demanded India to repatriate its 88 military personnel from his country.

The relations further deteriorated when three Maldivian officials made crass comments after Prime Minister Narendra Modi posted photos and videos of the Lakshadweep Islands, resulting in a heavy backlash from Indians, including many celebrities.

#BoycottMaldives campaign resulted in a significant decline in Indian tourists to the island nation too.

The 1981 India and Maldives trade agreement provides for the export of essential commodities.

"India emerged as Maldives’ second largest trade partner in 2022 and the largest in 2023. Indian imports from the Maldives primarily comprise scrap metals, while Indian exports to the Maldives include a variety of engineering and industrial products like drugs and pharmaceuticals, radar apparatus, rock boulders, aggregates, cement and agricultural produce, such as rice, spices, fruits, vegetables and poultry produce etc," the notice said.

According to Friday’s announcement, there has also been an increase of 5 per cent in the quotas for eggs, potatoes, onions, sugar, rice, wheat flour and dal (pulses).

With inputs from PTI

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