Lok Sabha Question No. 2858 (UNSTARRED), answered on 2019-07-10
Subject: Agreements between India and Mozambique
Ministry: COMMERCE AND INDUSTRY
Asked by: Pinaki Misra

## GOVERNMENT OF INDIA

## MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2858 TO BE ANSWERED ON 10 th JULY, 2019

## AGREEMENTS BETWEEN INDIA AND MOZAMBIQUE

## 2858. SHRI PINAKI MISHRA:

Will the Minister of COMMERCE & INDUSTRY ( वािण�य एवं उ�ोग मं�ी ) be pleased to state:

- (a) whether during 2016 when the rates of pulses rose sky high, India signed an agreement with Mozambique to double its import for the coming five years and if so, the details thereof;
- (b) whether it was necessary for the Government to sign an agreement for such a long period of five years and if so, the reasons therefor;
- (c) whether  signing  of  such  an  agreement  with  a  foreign  nation  has  totally displeased the farmers and the miller community and if so, the details thereof; and
- (d) whether  the  Government  is  now  trying  to  strike  a  balance  between  the consumers  and  the  farmers  by  imposing  a  quantitative  restriction  on  the import of pulses and if so, the details thereof?

## ANSWER

okf.kT; ,oa m|ksx ea=h ( Jh ih;w'k xks;y ) THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

- (a) Yes, Sir. India has signed a Memorandum  of  Understanding  (MoU)  with Mozambique on cooperation in the field of Production and Marketing of Pigeon Peas on 7 th July, 2016 for a period of five years.
- (b) & (c)  :  The  MoU  was  signed  keeping in  view  the  domestic  prevailing prices  and availability  scenario  and  with  the  objective  of  promoting  production  of  pulses  in Mozambique and encourage trade of pulses between India and Mozambique. Under the  MoU  between  India  and  Mozambique,  both  parties  have  agreed  to  target minimum  yearly  quantities  of  imports  of  pigeon  peas  and  other  pulses  from Mozambique to India till 2020-21 whether through private channels or Government to Government (G2G) sales. Government of India (GoI) is committed to purchase pulses from Mozambique only to the extent of shortfall in targets of imports by private traders.  Till  now,  no  imports  of  pulses  have  been  made  from  Mozambique  on Government account under the MoU. The minimum agreed quantities of import of pulses from Mozambique under the MoU during 2016-17 to 2020-21 are as follows:-

| Year    |   Quantity/ Targets for Imports in lakh metric tonnes (LMT) |
|---------|-------------------------------------------------------------|
| 2016-17 |                                                        1    |
| 2017-18 |                                                        1.25 |
| 2018-19 |                                                        1.5  |
| 2019-20 |                                                        1.75 |
| 2020-21 |                                                        2    |

Domestic  production  of  pulses  in  the  country  have  remained  short  of  the  domestic consumption requirements. The gap between demand and supply of pulses in the country are met by imports. Domestic Production and imports of pulses during 2016-17 to 2020-21 are given below:-

| Year                             | Total Production of Pulses (in LMT)   |   Total Imports of Pulses (in LMT) |
|----------------------------------|---------------------------------------|------------------------------------|
| 2015-16                          | 163.2                                 |                              57.98 |
| 2016-17                          | 231.3                                 |                              66.09 |
| 2017-18                          | 254.2                                 |                              56.08 |
| 2018-19 (3 rd Advance Estimates) | 232.2                                 |                              25.28 |
| 2019-20                          | -                                     |                               2.45 |

Source: Department of Agriculture Cooperation and Farmers Welfare (DACFW) and D/o Commerce

The import  targets  of  pulses  under  the  MoU are  very  small  as  compared  to  domestic production of pulses.  The Import of pulses did not have any significant impact on domestic farmers and miller community.

(d).   In view of bumper domestic production of pulses during 2017-18 and 2018-19, and Government  of  India's    commitment  to  ensure  better  prices  for  farmers,  quantitative restrictions have been imposed on import of some of the major pulses to protect farmers' interest. The import policy of Tur, Moong, and Urad was changed from 'Free' to 'Restricted' in the month of August, 2017. Peas was added in the month of April, 2018.  The decision was based on the direction of the 'Inter - Ministerial Committee to review the prices of Agricultural Commodities.

***