Cabinet approves import of pulses through long-term contract with Mozambique

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved a long-term contract by signing a Memorandum of Understanding (MoU) with Mozambique for import of pulses either through the private channels or Government-to-Government (G2G) sales through State Agencies nominated by the two countries.

The MoU aims at promoting the production of Pigeon Peas/Tur and other pulses in Mozambique by encouraging progressive increase in the trading of these pulses. The MOU includes targets for exports of Tur and other pulses from Mozambique to India for five financial years and aims at doubling the trade from 100,000 tonnes in 2016-17 to 200,000 tonnes is 2020-21.

The MoU will augment domestic availability of pulses in India and thereby stabilise its prices.

The total pulses production in the country during 2015-16 is estimated to be 17 million tonnes while 5.79 million tonnes of pulses were imported to meet the domestic requirements. However, the total availability of pulses including domestic production and imports were was less than domestic requirements putting pressure on the prices of pulses during the year 2015-16 and current year.

To mitigate the shortfall in availability of pulses and supplement the existing efforts at meeting the requirements, Government has decided to enter into long term G2G arrangement with Mozambique so as to ensure assured availability of pulses. The signing of this MoU with Mozambique may also lead to similar arrangements with other countries.

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