Domestic consumption of wheat is continuously increasing for several years in connection with population growth, influx of tourists and the economic recovery. In the current season (July-June) it can reach 1.03 million tons, 0,082 million tons more than last season.
Wheat in the UAE is not cultivated, therefore, the consumption is fully satisfied by imports. This season, imports are expected to grow by 3% to 1,073 million tons. Most competitive on the market is the UAE wheat from Russia, Canada, Turkey, Australia and India, due to its lower price and low transportation costs in comparison with wheat origin USA and other countries. Last season, Russia won the first place for the wheat supply in the UAE.
Part of the imported wheat UAE then sends to other countries. Last season, the UAE exported 31 tons of wheat, mainly in Sri Lanka and Oman, and re-exported 12 thousand tons.
By the end of the current season in the country will remain 169 thousand tons of wheat as at the end of last season, according to the forecast of the Ministry of agriculture of the United States. Importers are planning to maintain strategic inventory of wheat at 2-4 months of consumption to avoid a possible shortage.
Translated by service "Yandex.Translation"