NEW DELHI, INDIA — India is talking with Russia about importing wheat at a discount to boost supplies and keep food inflation in check ahead of state and national elections next year, Reuters reported.
The imports would allow the government to intervene more effectively in the market to reduce wheat prices that pushed inflation to a 15-month high in July.
Wholesale wheat prices in India increased 10% to a seven-month high. Wheat stocks are 20% below the 10-year average.
Sources said the government is considering imports through private trade and government-to-government deals. India has not imported wheat through diplomatic deals in years, Reuters said. In 2017, India imported 5.3 million tonnes of wheat.
India’s finance, trade and government spokespersons did not reply to emails and messages seeking comment from Reuters.
Since Russia’s invasion of Ukraine in February 2022, Russia has become India’s second largest trade partner mainly because of discounted oil purchases. India also is importing sunflower oil from Russia.