New Delhi, July 5 (IANS): The Union cabinet chaired by Prime Minister Narendra Modi on Tuesday approved a long-term contract for import of pulses from Mozambique by signing an MoU for supply through private channels or government-to-government sales via state run agencies.

The MoU will augment domestic availability of pulses in India and thereby stabilise the prices, an official source said. 

The MoU aims at promoting the production of pigeon pea/tur and other pulses in Mozambique by encouraging progressive increase in the trading of these pulses, an official release said here.

It includes targets for exports of Tur and other pulses from Mozambique to India for five financial years and aims at doubling the trade from 100,000 tonnes in 2016-17 to 200,000 tonnes in 2020-21. 

The total pulses production in the country during 2015-16 is estimated to be 17 million tonnes while 5.79 million tonnes of pulses were imported to meet the domestic requirements.

However, the total availability of pulses including domestic production and imports were was less than domestic requirements putting pressure on the prices of pulses during 2015-16 and current year. 

To mitigate the shortfall in availability of pulses and supplement the existing efforts at meeting the requirements, the government has decided to enter into long term arrangement with Mozambique so as to ensure assured availability of pulses. 

"The signing of this MoU with Mozambique may also lead to similar arrangements with other countries," the release said.

Faced with recurring demand-supply issues vis-a-vis pulses, India has requested Mozambique to consider if it can supply 'tur' dal for the next five years on a government-to-government basis.

A high-level official delegation led by Consumer Affairs Secretary Hem Pande visited the eastern African nation recently.

India is also negotiating with Myanmar for long-term supply of tur.