Context
Prime Minister Narendra Modi met Russian Deputy PM Dmitry Patrushev in New Delhi to discuss deepening agricultural cooperation. A key proposal: the creation of a BRICS Grain Exchange to enhance trade in agricultural commodities among BRICS members.
Key Highlights
- BRICS Grain Exchange Proposal
- Objective:
- Facilitate grain and agricultural commodity trade within BRICS.
- Strengthen food security.
- Reduce reliance on Western-dominated commodity markets (e.g., Chicago Board of Trade).
- India–Russia Bilateral Discussions
- Progress on FTA talks under the Eurasian Economic Union (EAEU) framework.
- Cooperation in fertilizer supply, farm technologies, and food processing.
- Strategic Importance
- Russia → key supplier of fertilizers (potash, phosphates) and grains to India.
- India–Russia agri-trade in 2024 projected to rise sharply.
- Collaboration enhances mutual food security amid global disruptions.
Russia’s Role in Global Agriculture
- Among world’s largest exporters of wheat & fertilizers.
- Ongoing challenges:
- Russia–Ukraine conflict disrupting supply chains.
- Western sanctions on Russian exports.
- BRICS Grain Exchange → mechanism to bypass restrictions and stabilize food prices.
India–Russia Agricultural Cooperation
| Area | Details |
| Fertilizer Supply | Russia supplies potash & phosphate-based fertilizers critical for Indian farmers. |
| Food Security | India imports wheat & grains from Russia during shortages. |
| Technology Sharing | Collaboration on modern farming practices & food processing industries. |
Significance for BRICS
- Promotes South–South cooperation.
- Provides alternative trade infrastructure beyond Western financial systems.
- Supports BRICS vision of a multipolar global trade order.
Challenges
- Geopolitical:
- Sanctions on Russia complicate payment & banking systems.
- Logistics:
- High transport costs, connectivity gaps among BRICS members.
- Currency Settlements:
- Need for alternative payment mechanisms (e.g., rupee–ruble, digital currencies) to reduce dollar reliance.