India to import cheap wheat from Russia to reduce inflation

In an unusual move to boost supplies and reduce food inflation ahead of next year’s state and national elections, India is negotiating with Russia to import cheaper wheat, whose price is rising globally.

The imports will allow India to intervene more effectively in the market to reduce wheat prices, which pushed inflation to a 15-month high in July.

IMPORT BY BILATERAL AGREEMENT

“The government is considering the possibility of imports through state-to-government and private trade agreements,” one of the four sources told Reuters. The decision will be made prudently,” she said.

India has not imported wheat through diplomatic arrangements for years. The South Asian country imported large amounts of wheat recently, with private traders buying 5.3 million tons of wheat in 2017.

Two sources familiar with the matter said the government’s plan to import Russian wheat is one of planned supply-side moves to lower prices for staples like fuel, grains and pulses, along with expanding rural programs to alleviate the impact of inflation in the country. poor. (Reuters)