India is in talks with Russia to import a large batch of wheat to reduce its prices on the domestic market, APA reports citing TASS.
“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.
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.