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Informist, Tuesday, Feb. 18, 2025

 

By Afra Abubacker and Pallavi Singhal

 

NEW DELHI – The Myanmar government is in talks with New Delhi to extend duty-free export of urad and tur to India, Tin Htut, deputy minister in Myanmar's Ministry of Agriculture, said. A memorandum of understanding in this regard, signed between the two countries in 2021, is valid till 2025-26 (Apr-Mar). 

 

"Myanmar farmers and traders will have a hard time if OGL (open general licence) is not extended," Htut told Informist on the sidelines of a pulses conclave last week. He did not specify for how long the pact would be extended.  

 

According to the terms of the MoU, India has an open general licence to import 100,000 tonnes of tur or pigeon peas and 250,000 tonnes of urad or black grams every year till FY26. An open general licence allows free imports without the need for a separate import licence. 

 

"From our side, we have to be competitive in terms of price, quality, and transition cost. The transition cost has become very high in Myanmar because of labor scarcity everywhere," Htut said. Myanmar primarily ships urad and tur to India while it exports green gram, or moong, to China and Europe. Consumption of pulses in Myanmar is very low, and production is almost entirely export-oriented. 

 

Asked about India's import policies, Htut said it would be "challenging" for farmers in Myanmar if New Delhi does not extend the duty-free import deal with Myanmar. "India is a champion in the global pulses value chain. If something happens, everything will change. Farmers will suffer a bit, but of course, we are not in a position to, you know, force. If it happens, we have to take the challenge," Htut said. 

 

However, Htut said that even if India does not extend duty-free imports of tur and urad, it would still have to buy the commodity to meet domestic requirements. India needs about 4.5 million tonnes of tur and 2.9 million tonnes of urad for annual consumption. Annually, the country produces only about 3.5 million tonnes of tur and 2.3 million tonnes of urad. 

 

Though India has also been relying on Brazil for urad and tur supplies, Htut said the South American country was "a very far place" for India. Brazil is the second-largest supplier of tur and urad after Myanmar. "Myanmar farmers and agriculture researchers must improve the quality of black gram (urad)," Htut said. 

 

India needs 26-27 million tonnes of pulses annually and produces only about 24 million tonnes. To meet domestic demand, it imports pulses from Australia, Myanmar, Canada, Brazil, and several African countries.

 

India's demand for pulses is estimated to rise to 40 million tonnes by 2030. To reduce dependence on imports, the government is focusing on boosting domestic production. The Budget for 2025-26 (Apr-Mar) announced a six-year mission to attain self-sufficiency in pulses and allocated INR 10 billion in 2025-26 (Apr-Mar) for the mission. 

 

Asked if India is likely to achieve self-sufficiency in pulses, Htut said he wasn't quite sure of this, as "40 million tonnes is quite a lot". However, he said he is hopeful that with India's science and technology and its "energetic political ambition, definitely, it can meet (the target) one day".  End

 

Edited by Avishek Dutta

 

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