Amid reports of India contemplating wheat imports from Russia, a New Delhi-based food policy analyst has said that supplies of the vital cereal were essential for India's food security.
The remarks of Dr. Santosh Verma, who was previously associated with the Delhi-based think tank Centre For Budget and Governance Accountability, and the Tata Institute of Social Sciences in Hyderabad, come at a time when the South Asian country has been battling a spike in inflation due to a rise in food commodities.
As per reports, India is in negotiations with its trusted Eurasian partner Russia to import wheat at a discounted rate.
The remarks of Dr. Santosh Verma, who was previously associated with the Delhi-based think tank Centre For Budget and Governance Accountability, and the Tata Institute of Social Sciences in Hyderabad, come at a time when the South Asian country has been battling a spike in inflation due to a rise in food commodities.
As per reports, India is in negotiations with its trusted Eurasian partner Russia to import wheat at a discounted rate.
India's Low Wheat Stocks Raise Food Security Concerns
Verma stated that these moves are due to India's lower wheat stock which stood at 28.3 million metric tonnes at the start of this month. Notably, this is the lowest level of buffer stock in government warehouses in a decade.
He mentioned that this stock is well below the 60 million metric tonne mark of July 2021.
The cereal expert pointed out that India generally does not import wheat.
"As local production of wheat was hit by floods, unseasonal rain, etc, in 2022 and this year, the authorities were thinking about beefing stocks," Verma told Sputnik India on Thursday.
In this light, Verma suggested that New Delhi would look at procuring wheat from Russia both through government-to-government deals and private trade.
New Delhi's Imports of Russian Wheat a Win-Win For Both Countries
He highlighted the fact that Russia is the largest wheat exporter in the world and its share in global wheat import is around 20 percent.
Moreover, the government of India is facing another challenge of the highest general and food inflation in more than 15 months.
The government of India also has to provide free foodgrains under the Targeted Public Distribution System (TPDS) to almost 800 million persons till December 2023, which could be extended to 2024 as general elections are due in April-May 2024.
"Therefore, the import of Russian wheat will ensure the wheat availability in the domestic market vis-à-vis food security to its vast population," he added.
India is considering around 8 to 9 million metric tonne import of wheat from Russia at a discounted rate.
Russia has reportedly offered discounted rates to India.
Given the close ties between the two nations, Verma reckons that New Delhi can easily get a discount of $25 to $40 per tonne from Moscow, which he believes will ensure that the import cost of wheat remains significantly below the local prices.
"This will provide a boost in the domestic supply of wheat, ease food inflation, and bring in stability against food security concerns ahead of forthcoming national polls in India. On the other hand, Russia would be able to sell its surplus grain amidst economic sanctions due to the ongoing Ukraine conflict," he concluded.