Union Cabinet approves import of pulses through long-term contract with Mozambique
The Union Cabinet has approved a long-term contract with Mozambique for import of pulses by signing a Memorandum of Understanding (MoU).
The MoU aims to promote the production of Tur (Pigeon Peas) and other pulses in Mozambique by encouraging progressive increase in the trading of these pulses.
- The MoU will augment domestic availability of pulses in India and thereby stabilise its prices.
- It aims at doubling the trade from 1 lakh tonnes in 2016-17 to 2 lakh tonnes by 2020-21.
- It has set target for exports of Tur and other pulses from Mozambique to India for five financial years i.e. till 2020-21.
- The pulses will be imported from Mozambique either through the Government-to-Government (G2G) or private channels nominated by two countries.
- The total pulses production in India is estimated to be 17 million tonnes during the year 2015-16 while 5.79 million tonnes of pulses were imported to meet the domestic requirements.
- However, total availability of pulses including domestic production and imports were less than domestic requirements putting pressure on the prices of pulses during 2015-16 and 2016-17.
- Thus, to mitigate the shortfall in availability of pulses and supplement the existing efforts to meet domestic demand, Union Government has entered into long term G2G arrangement with Mozambique to ensure assured availability of pulses.
Categories: Economy & Banking Current Affairs