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PRIME. Gazprom Export and the Hungarian energy company MVM, if necessary, can discuss at a commercial level the issue of changing the terms of Russian gas supplies to Hungary due to the "price ceiling", Russian Ambassador to Budapest Yevgeny Stanislavov said in an interview with RIA Novosti.
Hungarian Foreign Minister Peter Szijjarto said in December 2022 that Russian Deputy Prime Minister Alexander Novak, in a telephone conversation, allowed a change, if necessary, in long-term Hungarian-Russian gas contracts due to a price ceiling.
"If the price ceiling for Russian gas really becomes a 'headache' for the Hungarian side and for its 'treatment' it will be necessary to adjust the conditions for the supply of Russian 'blue fuel' to Hungary, I see no reason why this commercial issue cannot be studied within the framework of working contacts between Gazprom Export and the Hungarian state energy concern MVM," Stanislavov said.
The head of the Russian diplomatic mission recalled that in September 2021, these companies signed long-term contracts for the supply of Russian natural gas in volumes of up to 4.5 billion cubic meters per year, and from September 1, 2022, an additional 5.8 million can be supplied to Hungary. cubic meters per day.
"Budapest, unlike most of its EU partners, acts rationally in matters of gas supply from Russia and is guided by its own interests," the source said, noting the statement of Hungarian Energy Minister Csab Lantos that "Russian partners have always fulfilled their obligations," and " long-term gas import contracts concluded with Moscow are the key to Hungary's energy security."
Russian President Vladimir Putin, earlier commenting on the West's idea to limit prices for Russian energy resources, said that Russia would not supply anything abroad if it would be contrary to its own interests.
China is ready to increase the opening hours of border crossings on the border with Primorsky Krai, as this will increase the volume of Russian exports of Primorsky products to the countries of Southeast Asia. This was announced on Wednesday, March 29 by Chinese Vice Minister of Commerce Lin Ji at a meeting with Governor of Primorye Oleg Kozhemyako in Beijing.
“Chinese partners are ready to increase the working time of border crossings to four hours, to make them around the clock. This is of great importance for Primorsky Krai and exporters. At the same time, here it is necessary for our customs and border services to look at the state and their capabilities. We will organize this work and send relevant proposals to the Chinese side,” the governor said after the meeting.
In addition, Kozhemyako spoke about China's readiness to introduce a visa-free regime for tourist groups. It will allow tourists from both countries to move more freely across the land border. In the future, it is proposed to resume rail transportation through the Suifenhe checkpoint.
The governor added that Chinese partners are interested in expanding the supply of environmentally friendly products from Primorsky Krai, for example, linden honey.
News
/TASS/. Russian Deputy Prime Minister Alexander Novak discussed by telephone with Hungarian Foreign Minister Peter Szijjarto issues in the field of trade and energy supplies to this country, the press service of the Russian Cabinet of Ministers reported.
"The parties discussed cooperation in the field of trade and supplies of energy carriers," the statement says.
As the press service notes, the Russian Federation continues to supply gas to Hungary in accordance with contractual obligations and conducts additional deliveries. "Russia continues to supply gas to Hungary in accordance with contractual obligations, as well as additional supplies at the request of the Hungarian side," the report says.
Novak also stressed that Hungary is an important partner of Russia in the field of oil supplies via the southern branch of the Druzhba oil pipeline. "In 2022, it [Hungary] received 4.63 billion cubic meters of oil through the Transneft system," the Cabinet notes.
The Russian-Hungarian trade turnover in 2022 increased by 80%, to $10.8 billion. At the same time, Russian exports grew 2.5 times, to $9.4 billion. "The Hungarian leadership is pragmatic about building relations with the Russian Federation and maintaining established channels bilateral cooperation, despite the colossal pressure exerted by Brussels and Washington, Hungary remains, in fact, the only one of the EU countries that firmly defends its national interests, including a sovereign position in the dialogue with Moscow," Novak said in the message.
Earlier, Szijjarto said that he had agreed with Novak to continue uninterrupted supplies of Russian oil and gas. The head of the Hungarian Foreign Ministry said that they had a half-hour telephone conversation on Tuesday. In October, Szijjarto said that Hungary and Gazprom agreed to increase gas supplies via the southern route through Serbia and the Turkish Stream pipeline. At the end of August, Hungary signed a contract with Gazprom for the supply of an additional 5.8 million cubic meters. m of gas per day from September 1 for two months. In September last year, the Hungarian company MVM signed two long-term contracts with Gazprom, which provide for the supply of a total of 4.5 billion cubic meters. m of gas per year through pipelines through Serbia and Austria, bypassing Ukraine. The agreement is designed for 15 years and can be reviewed 10 years after the start of implementation.
The Ministry of Industry and Trade of Russia is not going to ban the import of plastic goods, TASS reports with reference to the press service of the department. The Ministry of Industry and Trade is working to limit the circulation of plastic products to reduce environmental damage, the ministry explained.
“The Ministry of Industry and Trade of Russia is working to limit (not ban) the circulation of plastic products (packaging, dishes, hygiene items) in order to reduce the harm caused to the environment during their disposal. <...> At the same time, there is no talk of a ban on imports or a ban on production. It should be noted that it is the restriction of turnover on certain types of packaging that will affect the need for imports of plastic packaging due to market factors, that is, there will be a decrease in demand for such products within the country,” the ministry said.
Earlier, Izvestia, citing sources, reported that the Ministry of Industry and Trade proposed to ban the supply of 28 plastic goods to Russia, including disposable tableware, cotton buds, bags and plastic containers.
It was also reported that the Ministry of Industry and Trade is studying the possibility of limiting the volume of production and turnover of these products within Russia. It was clarified that they propose to replace plastic goods with products made from a biodegradable analogue, glass, paper and wood. The department emphasized that the cost of such materials should be economically feasible, including for the production of socially significant products.
The ban on the supply of certain plastic products from abroad and the restriction of production is associated with the Circular Economy project, which provides for an increase in the share of use of secondary resources to 32% and the share of packaging recycling to 85% by 2030.
According to the Union of Plastic Processors, imported products account for more than 20% of the Russian market for finished polymer products. Mikhail Burmistrov, general director of Infoline-analytics, warned that in the event of a complete ban on supplies, prices could rise by 20-25%, and Russian manufacturers would not have time to fill the vacated niche in a short time.
Vedomosti
/TASS/. Moscow companies have earned 9.5 billion rubles on foreign marketplaces since 2019, in addition, the online export support program in other friendly areas has been strengthened. Alexei Fursin, head of the Moscow Department of Entrepreneurship and Innovative Development, announced this to journalists on Tuesday.
"Online export support programs have been implemented by the Moscow government since 2019. <...> Since the launch of promotion programs on international online trading platforms, capital entrepreneurs have received more than a thousand accounts and signed contracts worth 9.5 billion rubles," Fursin said. .
He added that last year also strengthened the program to support online exports to China, Southeast Asian countries and other friendly destinations. For the first time, entrepreneurs have been able to list and promote products on China's largest marketplace WeChat and Kuaishou, the Lazada platform for selling consumer goods, cosmetics and clothing, as well as on Indian Flipkart and Latin American Mercadolibre.
The press service of the department specified that the business received support on such marketplaces as Alibaba, Tmall.com, Epinduo.com, Taobao.com, JD.com, Pinduoduo.com, 1688.com, Tradekey.com, Exporthub.com and dozens of others.
"Manufacturers of food products, children's goods and consumer goods, cosmetic brands and other companies have joined the programs for the development of online exports. As a result, some enterprises went for export for the first time thanks to the support of the city," Fursin said.
The Association of Managers and the Higher School of Business of the National Research University Higher School of Economics presented the data of the joint survey "Russia's Strategic Pivot to the East". Leading Russian companies focus their foreign economic activity on the countries of the world majority. Of the more than 130 organizers who responded to questions, 70% of businesses reported that they already operate in new markets. Others plan to become more active in this direction in the near future. 74% of respondents stated the need for additional education on the peculiarities of business culture, the specifics of business in new markets.
The business association "Association of Managers" and the Graduate School of Business of the National Research University Higher School of Economics conducted a joint survey on the topic "Russia's Strategic Pivot to the East". Representatives of large Russian businesses, members of the Association of Managers and graduates of the MBA programs of the Graduate School of Business of the National Research University Higher School of Economics, answered the questions of the organizers.
More than half of the leaders of the domestic economy are positive about the prospects for developing new markets: 62% of respondents answered that the strategic turn of their companies to the markets of the world's majority countries is "not without difficulties, but they are not critical." 5% reported that business reorientation is "pretty easy". At the same time, there is a large share of those companies that describe the process of entering new markets with the words “extremely difficult,” such answers were received from 33% of participants.
Businessmen consider the Chinese market to be the most attractive: the majority of the survey participants, 49%, are set to work with it. Next in the ranking of Russian business interests are the UAE (41%) and Turkey (36%). They are followed at about the same level by Iran and the countries of Latin America - 22% each. One in five companies reported that they are already working or planning to enter the Indian market. About 10% of respondents are guided by African countries. The survey methodology allowed participants to name not one, but several priority markets.
“In the face of tougher sanctions, Russian companies continue to develop and find replacements for traditional markets. Domestic business is expanding its presence in business projects in the Middle East, Southeast Asia, and increasing exports to these regions. The survey data make it possible to assess the prospects for the development of Russia’s trade and economic relations with the countries of the world majority and to see bottlenecks that require not so much state support as investment in education, obtaining new knowledge about the specifics of working in these markets,” said Vyacheslav Evseev, Executive Director Managers' associations.
Valery Katkalo, Director of the Higher School of Business at the Higher School of Economics, said: “The results of our joint survey confirm the interest in new educational programs that will help Russian companies operate effectively in the face of increased turbulence and uncertainty in business conditions, as well as the changed geography of operations. We see that 74% of respondents stated the need for additional education in the specifics of business culture, the specifics of business in new markets. We already offer and will expand the portfolio of MBA, professional retraining and advanced training programs taking into account new challenges.”
One of the main reasons for the difficulties that arise businessmen called "lack of knowledge on new markets." For this reason, it is difficult to adapt the product to the local consumer, a serious obstacle is the language barrier and insufficient knowledge of the mentality of the population of another country - more than 40% of respondents focus on these factors. 43% of respondents noted that they have not yet managed to establish full-fledged communication with potential foreign partners. Among the individual difficulties, the respondents named “pincers of sanctions / counter-sanctions”, “lack of coordination of foreign economic activity in the host country”, “dumping prices by local partners”, “competition within the Russian Federation, which is transferred to foreign markets” and “lack of funds”.
The Association of Managers and the HSE Graduate School of Business intend to monitor the process of adaptation of Russian business to the new markets of the world's majority countries.
INTERFAX.RU - In 2022, Russia imported 412.7 thousand tons of greenhouse vegetables, which is 12.9% less than a year earlier (473.9 thousand tons). In value terms, supplies decreased by 6.4% to $497.6 million from $531.6 million in 2021, the Fruit and Vegetable Union said.
In particular, imports of cucumbers in physical terms decreased by 11.5%, tomatoes - by 13.1%. Tomatoes and cucumbers were imported mainly from Turkey, Belarus, China, Azerbaijan, Turkmenistan, and Uzbekistan.
The Union recalls that in 2022 the greenhouse industry broke another record by harvesting 1.5 million tons of vegetables. This is 7% more than in 2021. "Since 2015, the industry has been steadily gaining momentum in the production of greenhouse vegetables from year to year, there has been a positive trend in crop growth in this segment," the press release says.
Describing the price dynamics in this market, the union clarifies that it is characterized by a pronounced cyclicality associated with seasonality. Thus, traditionally high prices for greenhouse vegetables are observed from the end of late autumn to early spring. This is due to the fact that during this period the supply of domestic products on the market is reduced and imports increase, the press release says.
/TASS/. From September 30, 2023, deliveries of feed products for non-productive animals to Russia from Italy and France will be possible only for enterprises that have passed the inspection of the Rosselkhoznadzor, the agency said.
“From September 30, 2023, the supply of feed products for non-productive animals of French and Italian origin will be possible only from enterprises that have passed the inspection of the Rosselkhoznadzor and are able to comply with the requirements of the legislation of the Russian Federation and the Eurasian Economic Union,” the report says.
As explained in the department, Rosselkhoznadzor has been conducting large-scale work with foreign manufacturers of feed products for several years in order to provide the Russian market with safe and high-quality feed, balanced in terms of raw material composition and not containing undeclared genetically modified components. However, laboratory control of incoming imported products shows that, as before, pet food is imported into Russia with a composition that does not correspond to the composition declared on the label and established safety requirements for microbiological indicators, as well as containing genetically modified (GM) components. At the same time, not a single application for registration of GM feed from foreign manufacturers has been received for two years.
Inspections of enterprises located in France, Italy and Spain, carried out in 2023 by Rosselkhoznadzor specialists, showed that despite repeated notifications from the Russian side about product discrepancies and the need to take corrective measures, such work is not carried out by the veterinary services of these countries. Despite the systemic violations identified during the inspection, in order to avoid a shortage of pet food on the Russian market, the European side was given the opportunity to work on eliminating all inconsistencies within 1 month and provide supporting materials to Rosselkhoznadzor.
Enterprises for which information has been provided will be able to continue deliveries to Russia. Rosselkhoznadzor extends certification for them. Companies for which materials proving the elimination of deficiencies identified during the inspection were not sent within the prescribed period will be deprived of the opportunity to export their products to Russia. As explained in the department, we are talking about a certain list of manufacturers from France and Italy.
PRIME. Russia is the main and reliable supplier of wheat and grains to Algeria, and it will continue to fulfill its obligations responsibly, said the Chairman of the Federation Council of the Russian Federation, Valentina Matvienko, following negotiations with the Chairman of the Council of the Nation of Algeria, Salah Gudzhil.
"As you know, Russia is the main reliable supplier of wheat and grains to Algeria, and we will continue to fulfill our obligations with the same responsibility," she said.
The Russian delegation of the Federation Council arrived in Algiers the day before. Here Matviyenko will also take part in a meeting with the chairman of the National People's Assembly of Algeria, Brahim Bugali. The Russian politician also toured a photo exhibition dedicated to the 25th anniversary of the Council of the Nation.
/TASS/. Imports of Russian goods to the United States in January fell to $509 million from $638 million recorded in December 2022. This is evidenced by data published on Wednesday in the monthly report on trade turnover of the main US statistical agency, the Census Bureau.
In November 2022, the volume of imports of Russian goods to the United States amounted to $594 million, in October - $732 million.
The volume of exports of American products to Russia in January decreased to $45 million. In December, it amounted to $113 million.
As the US Census Bureau reported in early February, the volume of exports of American goods to Russia in 2022 became a record low for the entire time of calculating the indicators of Russian-American trade and amounted to $1.7 billion. The agency noted that the volume of exports of American products to Russia in the past year fell by about 3.7 times - from about $6.4 billion in 2021.
Imports of Russian goods into the United States in 2022 fell to about $14.45 billion from $29.6 billion recorded in 2021
The Ministry of Industry and Trade is preparing to reconsider the issue of introducing quotas for the import of plant protection products (PPPs) at a subcommittee of the Ministry of Economic Development, the department told RG. Quotas may be introduced from the beginning of 2024 until the end of the season (June 30), market participants said. Domestic producers assure that they are ready to more than cover the under-imported volume.
According to RG, the quota parameters have already been approved - it will be allowed to import 15 thousand tons of the main groups of pesticides. But the date for introducing the quota is still being discussed: if previously it was about the period from October 1, 2023 to April 30, 2024, now the deadlines have been shifted to January 1 to June 30, 2024.
Deputy Director of the Russian Union of Plant Protection Chemical Manufacturers Viktor Grigoriev says that 15 thousand tons for six months is only half as much as was imported into Russia without quotas. About 220 thousand tons are consumed in the country, and the share of imports is no more than 30%. At the same time, the expert is convinced that domestic producers are ready to fully satisfy the needs of the domestic market even now: the capacity is designed to produce 380 thousand tons of plant protection products. Quotas will make it possible to load empty capacities, stimulate the opening of new production facilities, localize the production of active substances and increase the export of Russian plant protection products.
But not everyone shares this optimism. Chairman of the Board of the Union of Grain Exporters Eduard Zernin says that he does not understand the motives for imposing quotas on the import of plant protection products. “If in the case of seeds we are actually talking about the creation of a new, investment-intensive industry, then in the case of the production of plant protection products, not a single new investment project has been announced. Just as there is no real import substitution. Almost all active ingredients are produced abroad. Russian manufacturers simply mix imported starting active ingredients and sell the result as a domestic product. They do this well without restricting competition, their market share is growing steadily, as is the profit, which they actively invest not in import substitution, but in the purchase of non-core assets for them, such as agricultural land," - Zernin comments. In his opinion, the agricultural producer whose cost of production will continue to grow will be the extreme one in this situation.
Russian newspaper
The restriction on fuel exports is indefinite, but depends on market saturation and the results of applying this instrument. This was announced on Thursday, September 21, by First Deputy Head of the Russian Ministry of Energy Pavel Sorokin. His statement was published on the ministry’s Telegram channel.
“This measure should have an effect very quickly, because leaching will stop, because a fairly significant volume was bought by unscrupulous market participants on the stock exchange or at oil depots and then exported. Now there is no such possibility. This measure just covers everything,” he said.
This decision, he said, will allow saturating the stock exchange and the domestic market and closing the shortage, including among farmers.
“Farmers are one of the largest consumers of diesel fuel, and this measure will fully satisfy the needs of our agricultural producers,” he said.
The ministry expects that the volumes now sent to the market will completely cover all needs and even create a surplus of fuel on the market.
News
The regional governor said this at the plenary session of the VI Business Forum “Days of International Business in the Ryazan Region”.
The session discussed the development of exports in new conditions, building new logistics routes, supporting businesses when entering foreign markets and increasing the competitiveness of domestic producers.
Governor Pavel Malkov noted that International Business Days are the main business event of the year in the Ryazan region.
“The economy is adapting and continues to grow under conditions of restrictions. Everyone understands that new challenges also mean new opportunities. We are using them to the maximum. We are increasing business ties and cooperation with friendly countries,” the government press service reports Malkov’s words.
The head of the region noted that Ryazan products are supplied to more than 100 countries:
“We actively use the opportunities of international contacts and electronic marketplaces. For the Ryazan region, supporting exports is one of the priorities.”
The forum will host strategic sessions, business negotiations, an exchange of contacts, and foreign participants will visit Ryazan enterprises.
7 news
Despite increasing economic pressure, enterprises in the Southern Urals continue to supply their products to every second country in the world. Since the beginning of the year, the number of export-oriented companies has grown by 161 and exceeded 2.5 thousand, Governor Alexey Teksler noted at the award ceremony for the winners of the All-Russian competition “Exporter of the Year” in the Urals Federal District. Moreover, this is facilitated not only by the convenient location of the region, but also by the situation itself, which forces businesses to look for new partners and markets.
- Today, the most important export directions are developing through Kazakhstan, Turkmenistan, China and Iran to India with subsequent access to the World Ocean. In economic terms, these regions are more attractive than Europe, where there is currently a recession and inflation is quite high. We need to further strengthen cooperation with countries in Asia, Africa, and Latin America. And South Ural companies are already supplying products and technologies there. For example, recently a batch of fire trucks produced at the Ural automobile plant in Miass was sent to Cuba,” said Governor Alexey Teksler.
It is worth noting that for the majority of Chelyabinsk enterprises, the main directions of foreign economic activity have traditionally remained the friendly states of the south-eastern region. Exports to Europe did not exceed 20 percent in the best years. Therefore, the authorities attach key importance to the development of the eastern branch of the North-South transport corridor.
Until recently, exporters used the western branch - the sea route through the Caspian Sea. With the opening of the Yuzhnouralsky transport and logistics center, an alternative appeared - cargo delivery by rail. As Valery Denisenko, director of the Chelyabinsk Region International Cooperation Agency, explained, container trains are already departing along the new route. Their launch was preceded by global work: coordination of their passage with the Kazakh and Turkmen sides, allocation of quotas for the rapid movement of goods, in which the government and the governor of the Chelyabinsk region took part. The development of this direction in the future is associated not only with Ural products, but also with popular exports from the regions of Siberia and the Far East.
The dry port's congestion is increasing. Two weeks ago, as part of the agreement that the regional government signed with FESCO at the St. Petersburg International Economic Forum, the first Chelyabinsk shuttle was launched to Vladivostok. It directly connected the Yuzhnouralsky TLC with the Vladivostok sea trade port. It is important that customs clearance of goods will take place directly in the Chelyabinsk region, so that they can then continue non-stop along the sea route to China and Korea.
A unified development institute has been formed in the region, providing companies with up to 70 different services in promoting products to foreign markets
According to the authorities, the development of transport corridors is a good incentive for the growth of foreign trade activity. In turn, a unified development institute has been formed in the region, providing export-oriented companies with up to 70 different services in promoting products to foreign markets. Starting from the acceleration of newcomers to the organization of exhibition activities, assistance in entering foreign marketplaces, translating websites, catalogs, booklets, searching for potential buyers abroad and delivering goods to the borders of the Russian Federation. During business missions, promotion problems are resolved at the government level, which makes it possible to remove administrative barriers. For example, a well-known South Ural cereal manufacturer began supplying its products to a large retail chain of Uzbekistan exclusively through the mediation of the authorities - after negotiations organized during a visit to the country by a delegation from the Chelyabinsk region.
“Since last year, with the support of the governor, another powerful promotion tool has been launched - regional exhibition pavilions in the countries of presence,” adds Valery Denisenko. - One of them now works in Minsk, where the region is represented by 26 enterprises, the other in Tashkent - with expositions of 16 companies. For three months, each of them receives exhibition space, promotion on the Internet and in the media, marketing, assistance in negotiations, trips to exhibitions in the country and contract support. All expenses are covered by the budget. Participants only need to submit samples of their products.
Export works not only for recognition and promotion of the region, but also brings tangible returns: every ruble of state support helps Chelyabinsk business earn up to 84 rubles, of which seven are returned to the treasury as taxes. For the budget this is an effective investment of funds, for enterprises it is an opportunity to develop production and create new jobs.
And, although the structure of exports in the industrial region has remained virtually unchanged over the years - 86 percent of supplies are metal and metal products, the number of participants in foreign economic activity is growing due to hundreds of small and medium-sized enterprises sending their own high-value products to foreign markets. Today, no less attention is paid to promoting the products of the agro-industrial complex, mechanical engineering and other knowledge-intensive industries.
It is no coincidence that among the winners of this year were such well-known enterprises in Chelyabinsk as the Ural Metallurgical Company, which exports its universal packaging tape to almost all continents, and the small enterprise "Ura Confectioners" (IP Timur Valeev), which sells sweets to 18 countries of the world. They prove by their example that any quality product can be supplied abroad.
“Next year, assistance to exporters will only increase, so I set all our enterprises the task of conquering new markets, and we will help them with this,” promised Alexey Teksler. - This is very important: export is not only a serious contribution to economic development, but also one of the main indicators of business success.
Russian newspaper
The Central Bank considers the increase in import duties to be a pro-inflationary factor, as it increases the prices of goods for consumers and companies that purchase imported equipment, materials and components
The press service of the Central Bank denied reports that the chairman of the bank, Elvira Nabiullina, suggested that in order to cool down demand for imports, think about raising import duties.
“This information is not true. On the contrary, the Bank of Russia believes that the increase in import duties is generally a pro-inflationary factor, as it increases the prices of goods for consumers and companies that purchase imported equipment, materials and components. An increase in prices for imported goods may also lead to an increase in prices for analogue goods that are produced domestically, ”the regulator’s press service told RBC.
The fact that the chairman of the Central Bank voiced such a proposal at a meeting of President Vladimir Putin with members of the government was previously reported by the Vedomosti newspaper.
The publication also reported that the government refused to return to the practice of strict foreign exchange control with the obligatory sale of a certain share of foreign exchange earnings by exporters. Instead, officials reached an informal agreement with entrepreneurs that they would sell more currency themselves.
The Financial Times wrote that the meeting considered proposals from the Ministry of Finance to oblige exporters to sell up to 80% of foreign exchange earnings within 90 days after receiving it, and to refuse state subsidies to companies that refuse to comply with these requirements. The fact that the authorities are discussing the possibility of returning part of the currency control measures to stabilize the situation with the ruble exchange rate was also reported by Bloomberg and Interfax.
According to Vedomosti, the government has been discussing the situation with major companies over the past two days, pointing out the "unacceptability of non-return of export earnings" to Russia.
RBC
/TASS/. India is negotiating with Russia to import a large batch of wheat to reduce its prices on the domestic market. Sources told the Economic Times.
"The government is exploring the possibility of importing wheat from Russia through private trade channels or through an intergovernmental deal. The decision will be made carefully," one of the sources said.
While India needs 3 million to 4 million metric tons of grain to cover the wheat market shortage, New Delhi may consider importing 8-9 million tons of Russian wheat to have a greater impact on price reduction, another source said.
According to Economic Times sources, the decision to buy Russian grain may 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 the country 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 introduction by the government this year, for the first time since 2008, of restrictions on the amount of wheat that producers and suppliers are allowed to keep in stock for wholesale and retail sales. 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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