India discusses discounted imports of Russian wheat with Russia – Kommersant
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India is negotiating with Russia to import Russian grain at a discount amid a global increase in grain prices, reported Reuters citing four sources. According to one of them, Russia can provide a discount of $25 to $40 per tonne of wheat.
According to Reuters, the purchase of Russian grain is one of the measures being considered by the Indian government aimed at lowering the prices of basic commodities. The decision on the deal will be made “carefully,” the source said. The purchase can be made through transactions between governments or private companies.
According to one of the sources of the agency, India needs 3-4 million tons of wheat to cover the deficit. At the same time, the country’s government is ready to buy 8-9 million tons of wheat from Russia, which will have a much greater impact on prices for basic commodities in the country. One of the officials said in a conversation with the publication that India buys sunflower oil from Russia and pays for it in US dollars. According to him, it is planned to use the same approach in grain purchases.
According to an unnamed official, Russia said it was ready to give India a discount on prevailing market prices for wheat. “India can easily get a $25 to $40 per ton discount from Russia. This ensures that the cost of unloading wheat remains well below local prices,” a grain dealer in Mumbai told Reuters.
As of August 1, stocks of wheat in state warehouses in India amounted to 28.3 million tons, which is 20% lower than the average for 10 years, writes Reuters. The last time India imported wheat was in 2017, when the country bought 5.3 million tons from private traders.
After Russia withdrew from the grain deal with Ukraine, Turkey and the UN, world wheat prices began to rise. From the end of June to the first week of August, prices for Russian wheat rose from $234-240 per ton to $250, large deals with delivery in September and October are already concluded at $262-265.
More details – in the material “Kommersant” “Money Grains”.
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