India Prioritizes Domestic Supply, Declines Myanmar's Proposal to Include Moong and Maize in Trade Pact

Commodities

3rd November 2025, 9:49 AM

India Prioritizes Domestic Supply, Declines Myanmar's Proposal to Include Moong and Maize in Trade Pact

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Short Description :

India's government has informed Myanmar that it is not keen on including moong and maize in their bilateral trade Memorandum of Understanding (MoU). This decision stems from ample domestic production of these commodities in India. While Myanmar sought to expand trade under the MoU, India's focus remains on its local agriculture. The existing MoU for Tur and Urad imports from Myanmar continues, with free import policies extended.

Detailed Coverage :

India has indicated to Myanmar that it will not include moong and maize in their existing trade Memorandum of Understanding (MoU). Government sources revealed that a delegation from Myanmar met Indian officials to discuss trade, proposing the inclusion of these two commodities to boost Myanmar's local cultivation. However, India cited sufficient domestic production as the reason for not agreeing to this expansion.

The current 5-year MoU, valid until FY 2025-26, allows annual import quotas of 2.5 Lakh Metric Tonnes (LMT) of Urad and 1.0 LMT of Tur from Myanmar. Despite these quotas, actual imports of Tur and Urad have frequently exceeded the set limits. India has maintained a policy of free import for Tur and Urad since May 2021, a policy now extended until March 31, 2026.

Bilateral trade between India and Myanmar reached $2.1 billion in FY 2024-25, with imports from Myanmar being significantly higher than exports to Myanmar. This trade imbalance is partly due to India's free import policy for Tur and Urad.

Impact This news is significant for the Indian agricultural sector as it signals the government's commitment to supporting domestic producers by controlling imports of commodities with ample local supply. It could influence domestic prices of moong and maize and potentially impact the profitability of farmers growing these crops. The continued free import of Tur and Urad also suggests sustained availability and potentially stable prices for consumers and food processing industries. The policy might lead to adjustments in trade flows and import strategies for other countries looking to export pulses and grains to India.

Impact rating: 7/10

Difficult Terms: MoU (Memorandum of Understanding): An official agreement or understanding between two parties, in this case, governments, outlining terms for cooperation or trade. LMT (Lakh Metric Tonne): A unit of measurement used in India, where 'Lakh' means one hundred thousand (100,000). So, 2.5 LMT is 250,000 metric tonnes. FY (Financial Year): A period of 12 months used for accounting and budgetary purposes. In India, it typically runs from April 1 to March 31.