TANZANIA – The Indian government has opened the window for millers and dealers in Tanzania to export up to 200,000 tonnes of pigeon peas, a move that will greatly boost farmer incomes.
Anisa Mbega, the Tanzania High Commissioner to India revealed that the export deal (ending March next year) will allow the traders to export the crop custom free.
Speaking exclusively to the Daily News TZ, the diplomat added that the country has been exporting various agricultural produce to India and this is a lucrative avenue to foster cooperation between the two countries.
Tanzanian pigeon peas farmers have had to contend with an uncertain market since 2018 when imports to India became unreliable following the export ban.
In 2016, Tanzania produced 271,882 tonnes of pigeon peas, but the yield declined as farmers, estimated at about 300,000, lose morale to plant the crop due to uncertainty around markets.
“We have successfully managed to convince India’s authorities to allow the importation of pigeon peas from Tanzania with a nil rate of customs duty,” Mbega told the Daily News.
India produces 17 million tonnes of perennial legume-related crops while its annual demand stands at 23 million tonnes giving room for imports to meet the deficit.
The stakeholders are therefore optimistic about this collaboration drawing reference from the recent trade results where the trade volume between Tanzania and India is also projected to hit 6 billion US dollars (equivalent to 14tri/-) in the next financial year (2023/2024).
The uptick follows a successful trade volume growth which reached 4.5 billion US dollars (equivalent to TZS 10.5 trillion) last year.
Additionally, the trade balance report for the financial year 2022/2023 indicates that India’s trade volume towards Tanzania hit 2.3 billion US dollars (about TZS5.34 trillion).
The increase in India’s exports to Tanzania is equivalent to 51 percent while Tanzania exported commodities to India worth US$2.2 billion (TZS 5.15 trillion), an increase of 49 percent.