India considers wheat imports from Russia at discount

The Indian government is negotiating with Russia to import wheat at a reduced price.

Reuters writes about this with reference to anonymous sources.

The reason is the rise in global food prices.

Thus, the government wants to increase supplies and curb food inflation ahead of the 2024 elections.

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

Sources say 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 pulse, along with an extension of rural schemes to ease the impact of inflation on the poor. A final decision could be made in a few weeks. 

However, last month, Sanjeev Chopra, the most senior civil servant at the federal food ministry, said there was no proposal to import wheat from Russia.

Reuters explains that India only needs 3-4 million metric tonnes of wheat to plug the shortfall, but the government may consider importing 8-9 million tonnes of wheat from Russia to have a far bigger impact on prices.

India can easily secure a discount of $25 to $40 per ton from Russia. This will ensure that the landed cost of wheat remains significantly below local prices.