India is reportedly in talks with Russia to import wheat at a discounted price to counter surging global prices and tackle food inflation. The imports would allow New Delhi to intervene more effectively in the market to drive down wheat prices. Last time India imported a significant amount of wheat was in 2017, when private traders shipped in 5.3 million metric tons.
Indian wheat prices surged to a six-month high owing to limited supplies and robust demand ahead of the festival season. Rising wheat prices could contribute to food inflation and potentially complicate the efforts of both the government and the central bank to contain inflation.
Global wheat markets are likely to tighten over the 2022/23 season. Meanwhile, there are already several supply risks building for the next marketing year, wh