Pulses Agreement

(2) In the context of the above notifications and in accordance with Article 3, paragraph 2, of the cooperation agreement on cooperation in the production and marketing of pigeon peas between the Government of the Republic of Mozambique and the Government of the Republic of India, the two sides agreed to export to India, during the period 2020-21, 200,000 MT of pigeon peas and other pulses grown in Mozambique. This year, for the first time, the government allowed millers, unlike traders, to import pulses. Suresh Agrawal, president of The All India Dal Millers Association, is not a happy man. New Delhi: A bumper crop should normally mean good news, but a record harvest of pulses in India last year led to a problem of fullness. So much so that India does not seem to be able to maintain its snack obligation in Mozambique last year, to import pigeon peas – a popular type of pulse known locally as Arhar – which leads to a visit by Mozambican officials to New Delhi to clarify this issue. Most agricultural trade contracts are based on standard forms drawn up by professional organizations. For example, the Grain and Feed Trade Association (GAFTA) contracts will be responsible for 80% of the 180 million tonnes of cereals traded worldwide each year, as well as a significant share of the global trade in feed and pulses. Payment conditions vary depending on supplier-customer relationships and products. The payment conditions frequently used in the trade of cereals, legumes and oilseeds are cash against documents (CAD) and letters of credit (L/C). Using payment terms that are acceptable to you and your customers is important to maintain business while reducing risk. But with the fall in pulse prices in India – after a record harvest of 23 million tonnes in 2016/17 and an increase in imports of 6.6 million tonnes – the import of 125,000 tonnes of pigeon peas from Mozambique in 2017-18 seems to be a commitment that New Delhi cannot meet. And it is a development that could seriously damage India`s reputation on the resource-rich continent, where India has sought to strengthen its economic, political and strategic presence in the face of China`s growing footprint. For products such as cereals, pulses and oilseeds, you have short-term insurance (repayment period of up to one year) and you can choose between an individual or multiple buyer policy.

A single buyer`s directive is useful for insuring a single debtor or single risk. The rules for multiple buyers can be more convenient if you regularly send to multiple customers and use a pay-as-you-go service. Two Indian government officials confirmed that Mozambique officials were in New Delhi last week to discuss the issue of pulse exports under MoU conditions.