Mitsui-backed ETG wins order over seized Mozambique cargo

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Mitsui-backed ETG wins order over seized Mozambique cargo

6:10 CAT | 27 Jan 2024

File photo: Lusa

Competitor Royal Group seized cargoes in Nacala, Beira ports

Dispute has raised pigeon pea prices in India, a key protein

Mozambique dismissed a criminal complaint against an employee of ETC Group, which counts Mitsui & Co. among its largest shareholders, meaning assets worth about $60 million that a competitor had seized must be released, the company said.

The agricultural commodities trader, known as ETG for short, said the order from the attorney general’s office stated that its worker should never have been arrested in December, and that the $60 million claimed for his bond was “absurd and astronomical.” The dispute has held up cargoes of pigeon peas bound for India, where prices have soared for the lentil-like legume that’s an important source of protein.

Mozambique shipped more than $215 million worth of pigeon peas to India in the year through November, making it the second-biggest supplier.

The dispute between ETG and Royal Group Lda, a local competitor in Mozambique, dates back to 2022 when Indian authorities seized one of Royal’s cargoes on suspicion that it contained genetically modified produce banned in that country. ETG said Royal wrongly accused its workers of tipping off India.

“The dismissal of the criminal case against ETG means that ETG’s assets that were seized by Royal Group, worth an estimated $60 million, as part of the bond agreement must now be returned,” the company said in an emailed statement.

Lawyers for Royal Group didn’t immediately respond to calls or messages seeking comment.

Source: Bloomberg