Strategic Context

India and Russia share decades of strategic ties, but agricultural trade has remained skewed. Russia dominates as a supplier of sunflower oil, potash fertilizers, and pulses, while India’s exports to Russia are relatively limited.

The ongoing discussions aim to rebalance trade flows, ensuring both sides benefit equally and laying the foundation for long-term food security and economic stability.

What India Wants

Indian exporters are targeting a bigger share of the Russian market through:

• Tea and Basmati rice exports

• Spices and marine products

• Dairy, fruits, and vegetables — including mangoes, grapes, and onions

For India, this is a chance to diversify beyond Middle Eastern and Southeast Asian markets, while meeting Russia’s rising demand for affordable and high-quality agricultural products.

Russia’s Priorities

For Russia, India remains a vital buyer of sunflower oil and fertilizers, especially under Western sanctions. Maintaining leadership in these categories is a key priority.

At the same time, Russia has shown openness to expanding imports from India, recognizing that diversified trade ties will help keep bilateral relations stable.

Challenges Ahead

Despite the opportunities, several hurdles remain:

• Payment mechanisms remain complicated due to sanctions limiting Russian banks’ global access.

• High logistics costs and shipment delays hinder smooth trade.

• Regulatory bottlenecks slow the approval process for new Indian exports.

Both nations are exploring local currency settlements and alternative shipping routes to overcome these challenges.

Market Impact

• For India: Securing long-term Russian contracts could boost rural incomes and diversify export earnings.

• For Russia: Stable imports from India would enhance food security at competitive prices.

• For Global Markets: Shifts in India–Russia trade flows—especially in fertilizers and sunflower oil—could influence regional pricing trends and supply chains.

Final Word

The push to rebalance agricultural trade marks a strategic shift in India–Russia relations. If successful, it could transform the current import-heavy equation into a more balanced exchange supporting Indian farmers, Russian consumers, and strengthening bilateral economic resilience amid global uncertainty.