Mozambique: Court again suspends exports of pigeon peas to India

Mozambique: Court again suspends exports of pigeon peas to India
December 21, 2023

The Maritime Court of Nampula, in northern Mozambique, has once again suspended the export of pigeon peas (Cajanus cajan) to India immediately  after the government authorised “free access” at a time when dozens of tonnes are still being held up.

 

 

“As a result of the Non-Specified Precautionary Measure  in the proceedings (…)which are running their terms in this section, (…) to order the suspension of the exit and transit, by sea, of the bulk and containerised cargo consisting of cowpeas, soya, sesame and peanuts belonging to the defendants,” reads the order of the Nampula Maritime Court. At issue is a court dispute over the liberalisation of exports, which has led to the blocking of dozens of tonnes of pigeon peas, almost all of which are bought by India.

 

According to the new document from the Nampula Maritime Court, the precautionary measure to stop the aforementioned products only covers five companies identified in the note against whom the action is being brought.

 

Compliance with the measure must not, therefore, “paralyse, disturb or hinder the ordinary execution of other port operations”, the court said in a document dated Wednesday.

 

Last week, the Mozambican government instructed the Directorate General of Customs (DGA) to authorise “free access” to the export of pigeon peas at a time when dozens of tonnes are still being held up, awaiting sale to India.

“Considering the damage caused to the economy as a result of the technical barriers put in place, the Director General of Customs must instruct the services, with immediate effect, to authorise free access to exports indiscriminately for all interested economic agents,” said the order issued by the minister of economy and finance, Max Tonela, to which Lusa had access on Thursday. The Mozambican government clarified at the end of November that it had appealed against a court decision that had previously banned the export of any more pigeon peas to India, maintaining the sale of only a quota of 200,000 tonnes of this product to the Asian country.

 

Mozambique’s minister of industry and trade, Silvino Moreno, had said in parliament that the court’s decision was the result of a request from a pigeon pea exporter, who is contesting the sale of more than the 200,000-tonne quota of the product to India, alleging the risk of losses to the business.

 

The plaintiff brought the case to court after the Mozambican authorities announced that the 200,000-tonne limit on the annual export of pigeon peas to India would cease to apply until March 2024, said the minister of industry and trade, at the time.

 

 

The suspension of the measure, which had been in force since 2016, followed a request from India’s Ministry of Industry and Trade for free sales of the product to the country, explained Silvino Moreno, assuring at the time that the Mozambican government would appeal the court’s decision.

 

The export of pigeon peas to India, which is the main market for this product, is the result of a memorandum of understanding with Mozambique, signed in 2016, providing for exemption from customs duties for Indian importers.

India is the largest producer and consumer of pigeon peas, with the Indian press indicating in recent weeks that the price of the product in the country has risen by 10% in two months precisely because of the difficulties in importing from Mozambique.

 


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