India in talks with Russia to import wheat to reduce food inflation: Report

wheat
Representative image (Photo: Reuters)

August 18, 2023

India is in talks with Russia to import wheat at a discounted price to boost supplies and curb food inflation, Reuters has reported, citing its sources.

“The government is exploring the possibility of imports through private trade and government-to-government deals. The decision will be made cautiously,” one of the sources told Reuters.

India has not imported wheat through diplomatic deals in years. The last time India imported a significant amount of wheat was in 2017, when private traders shipped in 5.3 million metric tons.

The government’s plan to import Russian wheat is one of the supply-side measures being considered to bring down prices of key commodities like fuel, cereals, and pulses, along with an extension of rural schemes to ease the impact of inflation on the poor, the report quoted the sources as saying.

Although India needs only 3 million to 4 million metric tons of wheat to plug the shortfall, New Delhi might consider importing 8 million to 9 million tons of wheat from Russia to have a far bigger impact on prices, the report said.

Wheat stocks at government warehouses were at 28.3 million tons on August 1, 20% below the 10-year average.

Last year, India banned wheat exports due to lower output, and this year’s crop is also expected to be at least 10% lower than the government’s estimate.

 

Share with others