MoU between India-Kyrgyzstan on agriculture cooperation

• The Union Cabinet has approved memorandum of understanding (MoU) between India and Kyrgyzstan on cooperation in field of agriculture and food related industry. The proposed agreement covers various activities in the field of agriculture and allied sector.
• The Agreement provides for constitution of a Joint Working Group comprising of representatives from both countries to prepare plans of cooperation, provide solutions to the problems arising during the implementation of this agreement and implementation of tasks determined by the Parties, as per the release.
• The agreement will be in the force on the date of signing and it will remain into force for five years, and it will be extended for five years automatically unless either party intends to terminate it.

Analysis:

• Kyrgyzstan is a relatively small economy of US $ 7 billion, but the country has a wide array of natural resources.
• It is the second largest gold producer in Central Asia after Uzbekistan and the hydropower potential is more than 150 billion kilowatt, the second highest in the region after Tajikistan.
• Kyrgyzstan is the first country in Central Asia to introduce a national currency, initiate privatization of land and become a member of the WTO.
• India has launched its ‘Connect Central Asia’ policy in Bishkek during the first Central Asia-India Dialogue in June 2012.
• Trade is affected due to the absence of direct land connectivity, and circuitous routes causing delay and escalated costs as compared to Central Asia’s trade with other regional countries. The total bilateral trade in 2013-14 was US$ 35 million and tilted in India’s favour with export of more than US $ 30 million and import of less than US $ 1 million from Kyrgyzstan.
• India has been looking for external supply of agriculture produce, mineral resources, such as coal, rare earth and gold, etc. Kyrgyzstan can supplement India’s growing food security and mineral resources requirements.

By: Vishal