Russian President’s Visit Sets the Stage
Borders may split nations, but food trade is the invisible bridge that keeps the world breathing. History stands testimony to the fact that since time immemorial, this world has prospered on the indispensable engine of trade. Russian President Vladimir Putin is set to pay a visit to India in 2025.
While the celebrations and the vibrant discourse on cultural and historical geopolitical ties are in full swing. However, the primary focus, like any other foreign visit, remains on dialogues that aim at strengthening bilateral trade ties and multifaceted economic relations.
This visit carries a strong commercial intent, which is just beyond the energy and defence. However, when it comes to bilateral ties between India and Russia, the Agriculture trade sector has also undoubtedly emerged as a key sector where India and Russia can expand their collaboration amid global economic shifts and constantly evolving agricultural trade patterns. In fact, this exclusive visit will set a fantastic stage for agreements that could reshape India’s agricultural export landscape.
Historical Trade Ties Between India and Russia
India and Russia have a longstanding trade relationship. These relationships have been historically dominated by the famous energy, defence, and machinery sectors. Agriculture, though might be smaller in volume compared with the aforementioned sectors, has undoubtedly shown consistent growth.
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India exported 428,600 tonnes of agricultural products to Russia, valued at $805.2 million in 2024, if we talk statistically. Interestingly, this is up from 399,200 tonnes worth $800.9 million in 2023. Crustaceans led the exports with 15.4%, followed by tea at 9.4%, and non-food extracts and natural resins at 9.2% among all the traded food commodities.
Exports of grapes and peanuts also grew almost 1.6-fold, while sesame seeds rose 17.4%. This no doubt reflects strong demand for Indian high-quality agri-products.
Russia’s agricultural exports to India also surged on the other hand significantly. Leguminous crops, sunflower oil, and bottled water saw significant growth if we talk about the major agriculture commodities that the Russians exported to India.
The pea exports increased 10.4-fold to 896,800 tonnes. This makes Russia the second-largest supplier of peas to India after Canada. The overall bilateral agricultural trade also increased by nearly 60% in 2024 if taking a holistic view of the trade ties. This signals an evolving and maturing agricultural trade relationship between the two countries.
Opportunities for Agro-Exporters Post-Visit
The industry observers are also optimistic that President Putin’s visit could open substantial trade opportunities for exporters, traders, and millers in India. It is being said that both countries are expected to explore agreements that will target marine products, processed foods, and bulk agricultural commodities.
Marine and Seafood Exports
Again, it is being observed that the trade agreement can also give a fantastic boost to the export of shrimps, prawns, and other seafood. The seafood exporters can secure long-term and sustained contracts that provide a predictable revenue and facilitate a supply chain scaling.
Pulses, Oilseeds, and Grains
India’s pulses, sesame seeds, and other oilseeds are gaining interest in Russia due to competitive pricing and high quality. Millers and bulk commodity exporters could leverage this trend to establish recurring contracts with Russian wholesalers and industrial buyers.
Fruits and Specialty Crops
Exports of grapes and peanuts have already shown remarkable growth. It is expected that agreements after the visit can formalize preferential trade terms. This includes reduced tariffs and expedited customs terms. All this will eventually allow the exporters to multiply and scale the production and maintain a consistent supply
Structural Factors Supporting Growth
Global trade is an intricate subject, and it is important to understand that there is not just one thing that makes it a viable option between the two countries. Similarly, in the case of India and Russia as well, there are several factors that make Indian agriculture ready to capitalize on these opportunities.
- High-Quality, Certified Products: Indian agriculture exporters already maintain an impeccable reputation in the international certifications and quality products, which will ensure competitiveness in Russia.
- Labor Cost Advantage: India as a country is known for cost-effective manufacturing of products and the same goes for agriculture products as well.
- Government Support: The recent policies and initiatives by the APEDA and the Indian Ministry of Commerce have enhanced the potential to boost the economic viability of agricultural commodity export. Moreover, the Indian government might also open some more initiatives to boost the agricultural trade with Russia which showcases a strong potential in the long run.
- Trade Diversification: Russia’s drive to reduce trade imbalance aligns with India’s push to expand agro-exports.
Challenges and Risks
While opportunities are significant, exporters and traders must be mindful of potential hurdles:
- Regulatory Compliance: Phytosanitary and food safety regulations in Russia require strict adherence.
- Logistics and Supply Chain: Efficient storage, transport, and distribution are essential for high-value commodities.
- Market Volatility: Currency fluctuations and global economic shifts could impact long-term contracts.
Strategic Roadmap for Exporters
If trade deals materialize, India’s agro-exporters should adopt a structured approach:
- Focus on High-Demand Commodities: Prioritize marine products, pulses, oilseeds, and specialty crops.
- Strengthen Supply Chains: Ensure millers, processors, and exporters can deliver consistent, large-scale supply.
- Leverage Agreements: Use trade deals to negotiate favorable pricing and contract terms.
- Engage B2B Networks: Build direct connections with Russian importers and bulk traders to reduce intermediaries.
Conclusion: A New Era for Indian Agro-Exports?
President Putin’s visit represents a critical and determinantal phase for India’s agricultural export sector. Historical trade ties have shown steady growth. However, the formal trade agreements and market access could open more avenues for boosting India’s agricultural export sector. This creates substantial opportunities for agriculture exporters, traders, and millers. If both countries implement strategic measures, Indian agricultural products that magnificently range from marine goods to pulses and specialty crops, could definitely gain a strong foothold in Russia. This will boost revenue, farmer incomes, and long-term trade stability.
Sources:
- Times of India – Putin’s India Visit: Trade in Focus
- Indian Ministry of Commerce and Industry Data
- RIA Novosti, Russian Government Reports
