Russia is running out of food, Grocery supplies from India

Orange marmalade, mango jam, pasta, oat flakes, pancake mix, spaghetti, basmati rice, coffee, tea, cornflakes, rum, ketchup, and prawns are among the items on the menu. Image Credit: AP

Due to a shortage of goods in its department shops, sanctions-hit Russia has turned to Indian retailers and agricultural exporters for help, especially since the EU has cut off supply for the second month in a row.

Orange marmalade, mango jam, pasta, oat flakes, pancake mix, spaghetti, basmati rice, coffee, tea, cornflakes, rum, ketchup, and prawns are among the items on the list.

After the West banned several Russian banks from the Society for Worldwide Interbank Financial Telecommunications (Swift) system, India and Russia are working on an alternative payment system based on the rupee and ruble.

To reduce the country's reliance on food and agro imports, Russia has urged Indian agro and processed food manufacturers and retail associations to establish a joint India-Russia agro-industrial park in "Lotos," the special economic zone in Astrakhan, southern Russia, to produce groceries, spices, and other foods.

The Federation of Indian Export Organizations received a list of supply requirements from the Russian embassy in New Delhi (FIEO). On Tuesday, the apex export promotion body will host a buyer-seller meeting to connect Russian companies with Indian sellers.

An agreement for trading in grocery and agro items may not be a problem, according to a government official who requested anonymity because there are no sanctions on food and pharmaceutical products.

Russian department stores have reportedly run out of basic items such as sugar, pasta, and rice, according to news sources. "Several significant Russian companies have contacted the Russian embassy in New Delhi to find suppliers for a variety of items in India. For importers from Russia and exporters from India, we will host a one-day sensitization workshop. Ajay Sahai, director-general and chief executive of FIEO, stated, "There are a number of things that Russia is interested in, and a lot of inquiries are coming in."

"Russians are reaching out for food and groceries, which were previously supplied by the EU, the United Kingdom, and the United States." They have sent a detailed list of items that they need right away. "We have already distributed the list to traders across India," said CAIT secretary general Praveen Khandelwal.

There has been a massive wave of interest from Indian retailers and manufacturers, who are eager to work with Russia now that the governments of the two countries appear to have reached an agreement on the payment mechanism. "This could imply replacing the EU, UK, and US markets in Russia." He added that the first shipment could leave as early as June.

Even though the payment mechanism and shipping channels are still unknown, retailers in India see it as an opportunity to increase sales. "Russia is willing to pay India a competitive price for the supplies, given that the EU is unwilling to engage." We see it as a fantastic opportunity," a Delhi-based retailer dealing in processed foods said on the condition of anonymity.

According to reports, a payment mechanism alternate solution to Swift has been finalized for transactions in local currency between Russia's state-owned development bank VEB and the Reserve Bank of India (RBI). In terms of shipping, Georgia has only one operational port for supplies to Russia.

Emails sent to the Russian embassy unanswered until the end of the day.

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