India’s trade arrangement with Mozambique on pulses, with an assurance of guaranteed purchases over five years, is necessary to deal with domestic supply shocks caused by erratic weather. However, anxieties about food price inflation and nutritional security can be addressed by holding out such an assurance to Indian farmers as well.
Cabinet has given approval for import of 1 lakh tonnes of pulses from the East African nation this year, going up to 2 lakh tonnes by 2020-21. The imports will be done on a government-to-government (G2G) basis and also by private traders.
While this has diplomatic payoff in a region where China is aggressively cultivating friends, there is uncharitable talk of a large corporate group with trading interests based in Gujarat inspiring the move, and the ruling party’s desire to reward the Prime Minister’s non-resident supporters, mainly the Gujaratis.

