Commodities

Maldives thanks India for sending essential commodities amid tensions, Jaishankar responds…

After months of diplomatic tension, the Maldives has thanked India for renewing the quota to import essential commodities during 2024 and 2025.

In a post on the social media site X (formerly known as Twitter), the Maldives’ Minister of Foreign Affairs Moosa Zameer extended his thanks on behalf of the island nation.

“I sincerely thank EAM Dr S Jaishankar and the Government of India for the renewal of the quota to enable Maldives to import essential commodities from India during the years 2024 and 2025,” he wrote.

“This is truly a gesture which signifies the longstanding friendship, and the strong commitment to further expand bilateral trade and commerce between our two countries,” he added.

Responding to the statement, India’s External Affairs Minister S Jaishankar also took to X, to respond, stating that India is “committed to its neighbourhood first and SAGAR policies”.

SAGAR & Neighbourhood First Policies

The Indian High Commission in a post on X said this follows a request from the Maldives government. The move is conducted under a special bilateral mechanism, resulting in the highest approved quantities since the arrangement’s inception in 1981.

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

The renewal of the quota aligns with India’s Security and Growth for All in the Region (SAGAR) policy, which emphasises maritime cooperation in the Indian Ocean region. Additionally, it underscores India’s ‘Neighbourhood First’ Policy, which seeks to prioritise relations with neighbouring countries.

Context of Diplomatic Tensions

The announcement comes amid diplomatic tensions between the two nations after relations soured following President Mohamed Muizzu‘s demand for the repatriation of Indian military personnel and subsequent controversies surrounding social media posts by Prime Minister Narendra Modi.

The 1981 India-Maldives trade agreement facilitates the export of essential commodities. Bilateral trade between India and the Maldives has seen significant growth, surpassing $300 million in 2021 and $500 million in 2022.

The recent announcement includes a five percent increase in quotas for various commodities such as eggs, potatoes, onions, sugar, rice, wheat flour, and dal (pulses). Notably, quotas for river sand and stone aggregates, vital for the Maldives’ construction industry, have been raised by 25 percent to 10,00,000 MT each.

Given the Maldives’ geographical constraints and the necessity for construction materials like river sand and stone aggregates, the renewal of quotas for these commodities holds immense significance for the nation’s development.

(With inputs from Agencies)

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