India lifts restriction on export of aggregate and river sand to Maldives

Indian government has lifted restrictions on the export of aggregate and river sand to the Maldives. Export of the materials, mainly used in construction, was earlier stopped in February 2013.

A notification published by the Indian Department of Commerce dated 1 January 2014 stated that the February 2013 notice has been withdrawn. A permit issued in June 2011, which had permitted export of specified quantities of stone aggregates to Maldives until the end of 2014, was stopped until further notice in February 2013.

“Accordingly, export of Stone Aggregates to Maldives is permitted with immediate effect,” read the notification published by the Directorate General of Foreign Trade of India.

It also states that the export is being permitted subject to the conditions and quantity ceiling indicated in June 2011 permit.

The June 2011 permitted Indian exporters to ship an annual ceiling of 500,000 metric tones of stone aggregate for 2011-12 and 550,000 metric tones of stone aggregate for 2012-2013 to the Maldives. For the fiscal 2013-14, the authorities have permitted 600,000 metric tones of shipments.

India placed visa and aggregate export restrictions on the Maldives over anti-Indian sentiments and increased tension following the Maldivian government’s retraction of the contract granted to Indian infrastructure giant GMR Group for managing Ibrahim Nasir International Airport.

Since the restrictions in February 2013, Maldivian construction industry has been struggling to adjust to the high prices over being forced to import of aggregate and river sand from further countries such as Dubai and Bangladesh.

The lift in aggregate and river sand restrictions by India comes on the same day that President Abdulla Yameen said, speaking to the press prior to his departure an official visit to India yesterday, that he will seek solutions for visa restrictions and the export of aggregate and river sand from India.