The talks have been going around that mention India to consider imports from russia, which is more than just Crude oil. India is rumoured to import wheat from Russia, at a discounted rate amid the increasing global food prices and tackle food inflation. Although, behind the background, the challenges of food inflation are to be taken care of ahead of upcoming state elections and general elections 2024.Â
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Introduction to global challenges
experts and economists have a say that they do not expect the Centre to cut down the taxes on fuels, despite the fiscal space being available, and unfortunately, the consumers are expected to spend excessively on the fuels, bearing high prices.
Gross refining margins were recorded averaging at $15 per barrel, as global demand in the fiscal year, 2024, specifically for Diesel, was comparatively high than the alternative fuels, like Natural Gas shooted up, additionally, European Union putting restrictions on Russian products, following the invasion of Ukraine.Â
To know more : https://asianatimes.com/oil-prices-in-india-continue-to-stay-high/
How would wheat imports help?
The imports will supposedly allow New Delhi to intervene, and aid in driving down the market prices of wheat, which marked an inflation to a fifteen month high in month of July.
The motive of the government behind this talked plan of import of Russian import is to drive down the prices of essential commodities like fuel, cereals and pulses.
Another measure is being considered by the government to extension of several rural schemes and incentives to aid the effects that inflation causes on the poor or the rural section, as per the sources.
It is also sourced that the imports will be taken care of very cautiously, as the government is undertaking exploration of all possibilities, to conduct import activities through private trade and government to government deals.Â
More about the wheat stock/ inventory
Apparently, India requires only 3 million to 4 million metric tons of wheat to cover up the shortfall, however, India might consider to import about 8 million to 9 million metric tons of wheat, just so it generates a bigger impact on the prices.
Since the Russia – Ukraine war in the last year, Russia is on the position of second largest seller of goods of India, significantly on the account of discounted oil purchases by India.
An official said that Russia has agreed to sell at the discounted rate than the prevailing market rates. Besides, no restriction has been put on the export of the food commodities from Russia.
The resources say that the approach will be used similar to the way India imports sunflower oil from Russia and payment is made in U.S dollars.Â
Figurative Summary of wheat in India
The last time whena significant amount of wheat was imported by India was in the year 2017. The shipping was performed by private traders in about 5 million metric tons
A dealer with a global trade house, based in Mumbai, said that India, with an ease can claim a discount from Russia of about $25 to $40 per ton.
Wheat prices in wholesale market saw a rise of about 10 percent in two months to seven month high in month of August.
Wheat stock warehouse of government stood at 28 million tons on 1st August, which was 20 per cent lower than the 10 year average.
