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India in talks with Russia to import 8-9 mln tons of wheat — newspaper

According to the media's sources, the decision to buy Russian grain can be made in a few weeks

NEW DELHI, August 17. /TASS/. India is in talks with Russia to import a large batch of wheat to reduce its prices on the domestic market, The Economic Times newspaper reported citing sources.

"The government is exploring the possibility of imports through private trade and government-to-government deals. The decision will be made cautiously," the newspaper wrote referring to what one of the sources told Reuters, when asked about wheat imports from Russia.

"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, another source said," the newspaper wrote.

According to Economic Times sources, the decision to buy Russian grain can be made in a few weeks. The plan of the Indian Cabinet to import wheat is seen as one of the possible measures to curb food inflation.

The last time India imported significant volumes of wheat was in 2017, purchases amounted to 5.3 million tons.

Rising wheat prices in India

Wholesale wheat prices in India rose by about 10% to a seven-month high in August due to limited supplies. As of August 1, India's state-owned wheat reserves stood at 28.3 million tons, 20% below the 10-year average.

The increase in wheat prices was also caused by the government’s decision to introduce restrictions on the amount of wheat that producers and suppliers are allowed to keep in stock for wholesale and retail sales. This is the first time since 2008 that such restrictions was introduced. According to the Ministry of Consumer Affairs of India, the authorities of the republic took such a step to ensure food security, stabilize prices, fight inflation and speculation.

India is one of the world leaders in the production of milk and meat, cereals and legumes. At the same time, the country is the world's largest importer of vegetable oils and is among the top buyers of beans and lentils. In 2022, the volume of agricultural imports of the republic amounted to a record $34.1 billion. Russia ranked 8th among suppliers of agricultural products.

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