By Sylvester Kumwenda
Lilongwe, June 16, Mana: Governments of Malawi and India have signed a Memorandum of Understanding (MoU) on Cooperation in the field of trade of Pigeons peas that will see Malawi export to India 250, 000 metric tonnes of the legume in a five year period.
The MoU was signed Wednesday in Lilongwe by Minister of Trade, Sosten Gwengwe, and India High Commissioner to Malawi, Shri Gopalakrishnan.
Annually, Malawi is expected to export 50, 000 metric tonnes of the legume to India. However, it also provides for annual review of the tonnage based on Malawi’s’ performance.
Gwengwe said the agreement effective 2021 to 2026 will translate into a guaranteed market for local farmers in the business which has eluded them for a long time, and therefore pave way for an increase in the production quantities of pigeon peas in the country.
“The country also stands to benefit from competitive international market prices that the Indian market would be offering and thereby diversifying sources of foreign exchange for our economy.
“Securing India as a reliable market for pigeon peas would encourage sustainable production for the commodity thereby improving the livelihoods of our local farmers,” he said.
Gwengwe added that foreign exchange earned from international markets when trickled down into Malawi’s economy, will not only uplift the livelihoods of the local farmers, but also help in the development of the country.
As such, Gwengwe said, government will ensure that all earnings realized from international markets are repatriated back to Malawi.
“As far as export diversification is concerned, the essence is that once we have exported, the proceeds must come back into this country. To that extent, there are intertwined efforts ranging from the Reserve Bank, Ministry of Trade, Malawi Revenue Authority just to mention a few.
“Furthermore, with the gazetting of the export mandate, we want our Agriculture Commodity Exchanges to be the link between the international markets and the Malawi exporter and for these to be able to record and report what prizes products have been sold for, and what proceeds are coming back to the country,” he said.
Gwengwe then urged farmers to make use of the market and come into cooperatives to produce more in order to meet the demand with quality products.
In his remarks, Gopalakrishnan said the deal strengthens longstanding bilateral trade relations between the two countries.
He said coming together to explore viable opportunities presents a strong sense of economic potential for the future of India and Malawi.
“Malawi is a rich country in natural reserves and fertile agricultural land. On the other hand, India has a massive appetite for energy, minerals and food for its large population.
“Similarly, Malawi needs capital, technology and skills to fully develop its economy and Indian companies are looking for opportunities abroad for productive investment. Both our countries can come together to find win-win solutions in so many areas,” he said.
He reiterated his country’s commitment to continue its human-centric partnership with Malawi based on principles of mutual respect and national ownership.
Susan Chimbayo, Chairperson of the Nandolo Farmers Association of Malawi welcomed the development saying it will open opportunities for local farmers.
“Even if you can cultivate, the problem has always been a stable market for your produce, meaning middlemen will always exploit you through low prizes.
“But we are now happy to have a stable market. And as the pigeon peas will be sold at international market, it means farmers should expect better prizes for their commodity. On our side, we have the capacity to produce and export even more than the agreed 50, 000 metric tonnes of high quality pigeon peas,” she said.
