India plans to import 9MT of Russian wheat to rein in price hike: Report

The average retail price of wheat in January was Rs 31.58 per kg, which reduced to Rs.28.74 per kg in May.

India plans to import 9 million tonnes of wheat from Russia through a government-to-government deal to augment domestic stock as prices begin to simmer, according to a report by the Economic Times.

The All-India Consumer Wholesale Price of wheat was up 6.2 percent to Rs 2,633 per quintal on August 2, from Rs 2,480 a year ago, the report said.

Prices have been rising since the government imposed stockholding limits and sold the grain in the open market to traders amid concerns about a shortfall in domestic production.

"The possibility (of imports) is being discussed at the highest levels," a person aware of the matter told ET.

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India's retail inflation in cereals and products was 16.3 percent in June and wholesale cumulative inflation in FY24 till June-end was 7.6 percent, the report said.

A combination of low production, declining stocks and rising demand has fuelled the wheat price rise.

The government pegged India's wheat production at a record 112.7 million tonnes (MT) in 2023, but traders and millers estimate the harvest at 101-103 MT due to unseasonal rain and hailstorms in February and March in the northern, central and western plains, which damaged the ripening crop, as per the report.

Minister of State for Consumer Affairs, Food and Public Distribution Sadhvi Niranjan Jyoti, in her written reply to the Lok Sabha on August 2, said the retail prices of wheat are continuously changing and the government is closely monitoring the prices.

The average retail price of wheat in January was Rs 31.58 per kg, which reduced to Rs.28.74 per kg in May. Thereafter, its average retail price increased to Rs 29.59 per kg in July, she said.

According to a report by Crisil, cited by ET, Russia pulling out of the Black Sea grain deal has raised inflationary risks since Russia and Ukraine are the world's largest suppliers of wheat and sunflower oil.