Abu Dhabi-based food and beverage firm Agthia Group PJSC will work with UAE government officials to try to secure an exemption from the wheat export ban that has been put in place by India.
India has been a primary source of the Abu Dhabi-based food company’s wheat supplies over the last 18 to 20 months, the firm’s chief executive officer Alan Smith said in a Bloomberg interview.
Earlier this month, the Indian government said it needed to halt shipments, after record heat slashed production and drove up domestic prices.
This ban has exacerbated an already-tight market for the grain, as global food prices continue to surge due to the Russia-Ukraine conflict, Bloomberg reported.
However, the Indian government said it would allow shipments for food security needs based on government requests.
“When we look at the announcement by the Indian government, they’ve also added to that ban on exports a caveat that they will continue to supply where governments request on a security basis,” Smith said.
“We’ll see how we can work with the Indian government and the UAE government and make sure we continue to ensure availability in the business.”
The company decided in March to sign longer-term supply agreements for foodstuffs. It is covered for supplies until about August or September, Smith revealed.
Agthia shares surged as much as 7 percent on Tuesday to the highest since March 7, before paring gains.
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