India, Argentina sign MoU on cooperation in Agriculture

India and Argentina have signed a memorandum of understanding (MoU) on Cooperation in Agriculture and Allied Sectors.

The MoU was signed by Agriculture Minister Sharad Pawar and his Argentine counterpart Julian Andres Dominguez in Buenos AIres on Saturday.

An official press release sAId the MOU provided a framework for exchange of information on best practices and technologies, cooperation in research and development and promotion of trade, investment and joint ventures.

Mr Pawar visited Argentina last week, in response to the invitation extended by Mr Domingues, who was in India last month.

Argentina is the largest source of import of soya oil by India. In the first seven months of this year, India has imported soya oil worth $1.4 billion. India is also importing from Argentina sunflower oil and other agro-products. Argentina is the largest exporter of soya and sunflower oils in the world.

During the meetings with Pawar, some Argentine companies expressed interest in growing pulses for exports to India in the future.

There are 14 Indian companies which have invested about $ 1 billion in the IT, agro-chemicals, steel, pharmaceuticals and cosmetics sectors in Argentina. United Phosphorus and Punjab Chemicals & crop protection Ltd have invested $ 100 million in Argentina in the production and export of agro-chemicals and seeds.

According to the release, agricultural machinery is emerging as a new area of trade and collaboration. Mahindra, TAFE and Sonalika from India have started exporting their tractors to Argentina. Sonalika plans to assemble their tractors in Argentina. The Argentine company Vassali is in contact with Sonalika to assemble harvesters in India.

IFFCO is exploring the possibility of setting up a fertilizer plant in Argentina using natural gas as the raw material.

A number of Indian companies have shown interest in investment and joint ventures in agri-business in Argentina, which has one of the most advanced and competitive agriculture sectors in the world.