India has signed a Memorandum of Understanding (MoU) with Mozambique on cooperation in the field of production and marketing of pigeon peas on 7th July, 2016 for a period of five years.

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, 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 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	1.00
2017-18	1.25
2018-19	1.50
2019-20	1.75
2020-21	2.00

Domestic production of pulses in the country has remained short of the domestic consumption requirements and the gap between demand and supply of pulses in the country is 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 (3rd 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.

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.

This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Lok Sabha.

MoU on pigeon pea imports establishes import targets and a government backstop purchase only for private shortfalls. A Memorandum of Understanding with Mozambique sets minimum annual import targets for pigeon peas and other pulses, with the Government committed to purchase from Mozambique only to the extent private imports fall short; no Government purchases have occurred. Due to bumper domestic production and price-protection objectives, the import regime for several major pulses was changed from free to restricted following an Inter-Ministerial Committee direction, and the MoU targets remain small relative to national production.