India is discussing with Russia the possibility of buying wheat at a discount due to rising world grain prices, Reuters reported citing sources.
The agency notes that wheat prices increased inflation in India in July to a maximum value in 15 months. Prices for it two months before the peak in August rose by about 10%. At the same time, stocks of this type of grain in India at the beginning of the month amounted to 28.3 million tons, which is 20% lower than the average for ten years. If India starts importing, it will be able to lower prices, as part of plans to reduce the impact of inflation on the country’s poor, the agency’s interlocutors say.
“The government is exploring the possibility of importing through private trade and through intergovernmental deals. The decision will be made carefully,” one of the sources told Reuters.
According to another source of the agency, India can buy 8-9 million tons of wheat from Russia, although it needs only 3-4 million. Imports of more volume will have a more significant impact on prices, the Reuters source said.
“India can easily get a discount of $25 to $40 per tonne from Russia,” an unnamed dealer from a major trading house in Mumbai told the agency.
Source: Rosbalt
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