OREANDA-NEWS India is negotiating with Russia to import a large batch of wheat at a discount to rising world prices. Thus, the country's authorities hope to reduce the cost of grain, due to the rise in price of which food inflation has sharply accelerated in the country, Reuters writes, citing sources.

In order to cover the shortage in the market, it is necessary from 3 to 4 million tons of grain. However, New Delhi may purchase 8-9 million tons of Russian wheat to have a greater impact on price reduction.

The government is studying the possibility of importing from Russia through private trade channels or by concluding an intergovernmental deal — the last time such a contract was concluded in 2017. According to sources, a final decision may be made in a few weeks.

Wheat prices in India have increased against the background of government restrictions on the amount of grain stored by producers and its sale to traders for supplies abroad. Such measures were taken due to fears of a shortage of grain for domestic consumption — in February-March, unseasonal rains and hail hit the northern, central and western regions of the country, which caused serious damage to crops.