India Restricts Export of Essential Commodities to Maldives

The Indian government has implemented stringent measures, placing port restrictions on the export of certain essential commodities to the Maldives. 

This decision comes as part of a notification issued by the Directorate General of Foreign Trade (DGFT).

advertisement

According to the new directive, the export of essential goods to the Maldives will now be channelled exclusively through four designated customs stations. These stations include the Mundra Sea Port, Tuticorin Sea Port, Nhava Sheva Sea Port, and the ICD Tughlakabad, as outlined in the DGFT notice.

Previously, India had imposed export restrictions on nine key commodities, such as onion, potato, egg, rice, and sugar. However, exceptions were made for these items under the ‘Neighborhood First’ policy of the Indian government.

Under a longstanding agreement dating back to 1981, India and the Maldives have maintained a trade relationship allowing for the export of essential commodities, with the Maldives receiving the highest import quota for these items this year.

Moreover, India has augmented the export quota of construction materials to the Maldives by 25%, permitting the export of 1,000 metric tons.

Earlier in 2022, India had imposed restrictions on flour exports, followed by limitations on onion exports in December 2023. Despite these restrictions, India extended export permissions to close allies, including Bangladesh, the United Arab Emirates, Indonesia, and the Maldives.

The current administration in the Maldives, led by President Dr. Mohamed Muizzu and the ruling coalition, initiated efforts to reduce reliance on Indian aid, particularly following the ‘India Out’ campaign preceding their ascension to power. To achieve this, the Maldivian government entered agreements with Turkey to import rice, flour, sugar, and other essentials.

Furthermore, discussions are underway within the Maldives government to extend the Aasandha healthcare service to the United Arab Emirates and Thailand, aiming to diversify its aid sources and lessen dependency on India.

Relations between India and the Maldives have experienced strain since the regime change in November 2023. Tensions escalated following derogatory remarks made by senior Maldivian government officials against Indian Prime Minister Narendra Modi on X.