In order to combat the shortage of pulses, and their recurring price rise, India has decided to go for a long-term agreement for their procurement from Mozambique. The Indian Government will purchase 1,00,000 tonnes of Arhar and Moong Dal every year for the next five years from the African nation. An agreement in this regard will be signed during Prime Minister Narendra Modi’s visit to Mozambique on July 7.
The PM will be on a four-nation tour to Africa from July 7-11 during which he will travel to Mozambique, South Africa, Tanzania and Kenya.
India is already buying pulses from Mozambique but the quantity is not as huge as the new agreement, estimated to be worth five billion dollars. According to Amar Sinha, Secretary (Economic Relations) in Ministry of External Affairs, the Government is working to link the pulses procurement with the Minimum Support Price (MSP) given to Indian farmers so that the African farmers do not have to suffer loss.
India is also looking at defence tie-ups with Mozambique, which includes capacity building and training of personnel. Officials said India would be happy to sell them weapons using the line of Credit.
In South Africa, India is looking at some important pacts in defence, counter terrorism and maritime security. India is keen to involve South African defence manufacturing companies in defence production in India in collaboration with Indian companies. Private agreements between two companies will be signed during PM’s visit for joint production in defence.
It is learnt that the South African Defence firm Denel, that was blacklisted nearly ten years ago by the Indian Defence Ministry, may be allowed to be back in Indian market once the investigating agencies here give it a clean chit. The company was accused of paying kick backs for securing weapons sale deal in 2002.
Tie-ups in energy-both coal and solar - is also on cards during PM’s visit to South Africa and Tanzania.