Indian exports ban takes toll on Dubai

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Fruit and vegetables from south India have disappeared from UAE shelves after producers stopped exports from airports in Kerala.

Eighteen major exporters are boycotting exports to Middle Eastern countries after a debate over price, UAE daily Emirates Today reported on Tuesday.

Suppliers banned exports on Thursday after facing losses following the appreciation of the Indian rupee against the US dollar, to which the UAE dirham is pegged.

According to Emirates Today, the Indian rupee 14% gain against the dollar has lead to complaints from exporters that products are being sold for too little in the Middle East.

Supply contracts were last negotiated in 2003 when the dollar was equal to 44 Indian rupees, according to Suresh Mathew from the Agricultural Process Food Exporters Association (Apfea). However today it equals just 39 rupees.

According to Mathew, the association attempted to renegotiate prices but stopped all exports after importers did not respond.

Traders at Dubai’s Al Aweer market told Emirates Today there was an acute shortage of Indian bananas, curry leaves, mangoes, bitter gourds, beans and cucumbers since the ban.

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READERS' COMMENTS

IMports being denominated in US $
Posted by Mufeed Rawashdeh, dubai, uae on Tuesday 30 October 2007 at 13:00 UAE time


This is exactly what I was talking about when I wrote my comment on Oct. 17, 2007 ( http://www.arabianbusiness.com/index.php?option=com_content&&view=article&id=502140).

$ vs Dhirams
Posted by Anonymous, Dubai, UAE on Tuesday 30 October 2007 at 09:00 UAE time

Amazing the commodities in the present market are so high and yet you see so much noise from the suppliers. Where in the world are we heading, what happens to those expats/working class? Hope the UAE government takes a decision keeping all these factors in mind. In India specially south India the major problem is that the farmers are no more called farmers due to the property hype. The farmers are selling their lands to other non-agricultural segments which certainly affects the products - no harvest, no products because farmers are busy enjoying the easy money due to this.. just blaming the dollar and dirham factor is just a way to compensate else where.

indian exports
Posted by MICHAEL, DUBAI, UAE on Tuesday 30 October 2007 at 08:00 UAE time

It is really a shame that all prices are rising and inflation is hitting the common man. On the other hand, the Indian rupee exchange is touching deep week, someone should read and act on it - reading is not alone. This is the best topic covered by ArabianBusiness.com.

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