Tanzania forges bilateral agreement with India to commence pea export immediately

TANZANIA – Tanzania has embarked on a significant venture to export 200,000 tons of pigeon peas to India, marking a pivotal moment in the deepening bilateral ties between the two nations.

 The Minister for Foreign Affairs and East African Cooperation, Mr. January Makamba, unveiled this development, emphasizing its immediate implementation until March 2025.

This move follows successful discussions between Mr. Makamba and India’s Minister of Corporate Affairs, Piyush Goyal, in New Delhi.

Mr. Makamba affirmed the commitment to this trade collaboration, stating, “A new agreement will be signed after the expiration of the current deal.”

Additionally, he highlighted the upcoming Joint Trade Commission (JTC) in April, where strategies to further enhance trade between Tanzania and India will be delineated.

The Tanzania High Commissioner to India, Anisa Mbega, provided exclusive insights into the agreement, stating, “Tanzanian traders are invited to export 200,000 tons of pigeon peas until March 2023 with zero custom duty.”

This significant concession from India is expected to offer Tanzanian farmers a robust market for pigeon peas, aligning with the country’s efforts to secure reliable markets for various crops at favorable prices.

Highlighting the potential of this opportunity, High Commissioner Mbega explained, “India produces 17 million tons of perennial legume-related crops annually, with an annual demand standing at 23 million tons.”

Tanzanian farmers are poised to address a portion of the 6 million-ton deficits through this export arrangement.

The growing economic collaboration between Tanzania and India is evident in the projected trade volume, set to reach 6 billion US dollars (equivalent to 14 trillion TZS) in the next financial year (2023/2024).

Last year saw a notable increase, with the trade volume reaching 4.5 billion US dollars (equivalent to 10.5 trillion TZS).

The trade balance report for the financial year 2022/2023 revealed that India’s exports to Tanzania reached 2.3 billion US dollars (equivalent to 5.34 trillion TZS), indicating a 51% increase.

In return, Tanzania exported commodities worth 2.2 billion US dollars (5.15 trillion TZS), marking a 49% growth.

Key exports from Tanzania include gold, copper, coal, cashews, avocado, and soya beans, while India imported petroleum products, organic and inorganic chemicals from Tanzania.

Considering this promising trajectory, the collaboration in the export of pigeon peas is anticipated to further solidify the economic partnership between Tanzania and India, fostering mutual benefits for both nations.

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