The Ukraine-Russia war has pushed up world inflation. Farmers are facing difficulties due to the increase in fertilizer prices. In this context, Russia and India have signed an important agreement. In particular, the deal was reached under pressure from the United States.
The war in Russia and Ukraine has pushed up inflation worldwide. Together, the two countries account for 25 per cent of the world's total wheat exports. But the war has affected wheat exports. Russia is also a significant producer of fertilizers. However, due to economic sanctions imposed worldwide, Russian fertilizers cannot enter the world market. As a result, fertilizer prices have gone up. But India has been greatly relieved.
India and Russia have signed a major agreement on fertilizer supply. The deal was struck a long time, senior officials said. European countries, including the United States, imposed sanctions on Russia over its attack on Ukraine. Therefore, Russia cannot trade in dollars.
The U.S. made several attempts to stop India's trade with Russia. A pressure system was also used. But we will consider our interest and formulate foreign policy accordingly; in such words, the Modi government clarified its role. After Western countries imposed sanctions, India and Russia started using the barter system. Accordingly, India will take fertilizer from Russia. In return, Russia will be supplied with tea, raw materials for industries and auto parts.
The majority of India's population is dependent on agriculture. India's economy is worth 2.7 billion. The share of agriculture is 15%. The Russia-Ukraine war has affected fertilizer imports. Rising fertilizer prices are a burden on farmers. India started talks in February to buy fertilizers from Russia. India insists on lowering fertilizer prices. The agreement was finally finalized after three months.