India, which is the world’s second-largest importer of fertilizer, received about 200,000 tons of fertilizers from Russia in the month of May, Russia’s state-run TASS news agency reported on Tuesday.
New Delhi imported “around 182,000 tonnes [200,620 tons]” of agricultural fertilizers from Moscow in the first three weeks of May, according to the TASS report on May 24.
The Times of India reported on May 23 that the Indian government was developing a “barter” system with Russia’s government to ensure New Delhi continues to receive adequate fertilizer shipments from Moscow. Sweeping financial sanctions on Russian entities have significantly curbed exports from the country in recent weeks. The U.S. government led an ongoing campaign to punish Russia financially through the sanctions in response to the nation’s latest war with Ukraine, which launched on February 24.
India’s federal government is “working on … establishing a mechanism to work out the cost of fertilizer in Rupee [Indian currency] and in return the traders can export Indian items to Russia of similar value,” anonymous Indian government sources told the Times of India on Monday.
“[T]his mechanism is possible as fertilizer is not a banned item [under the new anti-Russia sanctions] and three ships carrying the soil nutrients from Russia have landed in India during this month. Russia imports items including tea, medicines, basmati and non-basmati rice from India,” the publication noted.
“We are confident of our traders getting more fertilizer from Russia under this arrangement to meet our requirement,” an unnamed Indian government official told the Times of India.
“A similar Rupee-Rouble trade arrangement was earlier done to settle dues in Rupees instead of Dollars or Euros. The idea was first conceived in 1953 under the Indo-Soviet trade agreement,” the newspaper recalled.
India has received nearly 400,000 tons of fertilizers from Russia since Moscow began its latest territorial conflict with Kyiv on February 24, according to TASS news agency.
India’s government has allegedly “assured farmers that there will be no shortage of fertilizers during the kharif [upcoming fall harvest] season and they won’t face any additional financial burden despite fluctuation in international prices,” the Times of India reported on May 23.
India is the world’s number two importer of fertilizers after China, while Russia is the world’s number one exporter of fertilizer. New Delhi purchases several types of fertilizers from foreign markets, including urea, ammonium dibasic phosphate, potassium chloride, nitrogenous, phosphate, and potash.
“India’s demand for potassium is fully satisfied by imports from Russia and Belarus,” TASS boasted on Tuesday.