INDIA RUSSIA BRICS GRAIN EXCHANGE PROGRAM
Context:
- On September 25, 2025, PM Narendra Modi met Russian Deputy PM Dmitry Patrushev in New Delhi.
- Discussion held on creating a BRICS Grain Exchange to enhance agricultural trade cooperation among BRICS nations.
- Aim: Boost mutual agricultural trade among BRICS members.
- Venue: World Food India 2025.
BRICS GRAIN EXCHANGE PROPOSAL
What is the BRICS Grain Exchange?
- A proposed common agricultural platform to:
- Facilitate grain and agri-trade among BRICS nations.
- Improve market access and trade integration.
- Reduce dependency on Western-dominated food markets.
Purpose:
- Strengthen mutual food security.
- Improve agricultural trade efficiency.
- Potentially stabilize grain prices across member countries.
INDIA RUSSIA BILATERAL COOPERATION HIGHLIGHTS
Key Sectors:
- Agriculture
- Fertilizers
- Food processing
- Trade & Energy
- Defence (contextual background)
Diplomatic Tone: “Russia highly values its special and privileged strategic partnership with India.” – Dmitry Patrushev
- Trade Turnover (2024): Reached a historic high.
- India considered a key ally of Russia in the global arena.
ADDITIONAL DISCUSSION
- Both sides discussed progress on an FTA between:
- India and the EAEU (comprising Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan).
- Aim: To enhance bilateral trade, reduce tariffs, and improve market access.
RELEVANCE OF THE BRICS GRAIN EXCHANGE
For India:
- Enhances agricultural exports to BRICS nations.
- Helps Indian farmers by diversifying markets.
- Strategic alternative to Western-controlled grain pricing.
For BRICS:
- Creates a South–South trade platform in agriculture.
- Builds economic autonomy and food security.
- May reduce reliance on the US dollar for food trade.
ABOUT BRICS
Origin and Evolution:
- 2001: Term BRIC coined by economist Jim O’Neill (Brazil, Russia, India, China).
- 2006: First informal BRIC meet (G8 Outreach Summit, Russia).
- 2009: First formal BRIC summit (Russia).
- 2010: South Africa joins → BRICS
CURRENT MEMBERSHIP
As of 2025, BRICS has 11 members:
- Original 5: Brazil, Russia, India, China, South Africa
- New Members (2024–25):
- Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, UAE
- Note: Saudi Arabia listed on BRICS website, but has not officially joined, per sources.
BRICS EXPANSION
Concept:
- Introduced at 16th BRICS Summit, Kazan (Russia), Oct 2024.
- Allows non-members to engage with BRICS without voting/veto rights.
- Designed to strengthen ties with emerging economies.
Confirmed Partner Countries (as of Jan 2025):
-
- 9 countries officially accepted invitation:
- Belarus, Bolivia, Cuba, Kazakhstan, Malaysia
- Thailand, Uganda, Uzbekistan, Nigeria
Nigeria became the 9th Partner Country (Jan 2025) – Africa’s largest population and 4th largest economy.
INITIAL 13 INVITEES
| Region | Countries |
| Latin America | Cuba, Bolivia |
| Eurasia | Belarus, Türkiye |
| Africa | Algeria, Nigeria, Uganda |
| SE Asia | Indonesia, Malaysia, Thailand, Vietnam |
| Central Asia | Kazakhstan, Uzbekistan |
OBJECTIVES & GOALS
Core Objectives:
- Promote economic growth and inclusive global governance.
- Intra-BRICS trade and investment cooperation.
- Reform of global institutions (UN, IMF, World Bank).
- Empower Global South: fair trade, climate justice, development support.
- People-to-people exchanges: cultural, educational, and social linkages.
BRICS STRUCTURE & KEY MECHANISMS
| Mechanism | Purpose |
| New Development Bank (NDB) | Fund infrastructure & development projects |
| Contingent Reserve Arrangement (CRA) | $100B safety net for financial crises |
| BRICS Academic Forum | Promote research & academic collaboration |
BRICS+ STRATEGIC & ECONOMIC SIGNIFICANCE
Economic Strength:
- 45% of global population
- 35% of global GDP (PPP)
Strategic Role:
- Counterbalance to G7 (Western bloc).
- Advocates fair trade, climate justice, and technology access.
- Promotes de-dollarization: e.g., India–UAE trade in rupees & dirhams.
- BRICS Currency: under discussion – could reshape global trade.
- Cooperation in:
- Digital payments
- Cross-border payment systems
- Renewable energy & technology
SIGNIFICANCE OF BRICS IN GRAIN EXCHANGE PROPOSAL
Strategic Importance:
- Enhances food security and agriculture trade integration within BRICS.
- Helps bypass Western-dominated grain markets.
- Can stabilize prices, improve supply chains, and boost farmer income.
Implications for India:
- Improves agriculture export avenues.
- Strengthens strategic partnership with Russia.
- Aligns with India’s food processing & fertilizer goals.
CHALLENGES & SOLUTIONS
| Challenge | Solution | |
| Overlapping Groupings | BRICS overlaps with other groupings like IBSA (India, Brazil, South Africa) and BASIC (Brazil, South Africa, India, China), leading to potential inefficiencies. | Clearly define the roles of each grouping to avoid duplication of efforts and ensure complementarity. |
| Geopolitical Tensions | Diverging geopolitical interests among member countries, especially regarding China’s Belt and Road Initiative, may cause tensions. | Promote open dialogue and focus on shared goals like global governance reform to maintain unity. |
| Economic Slowdowns | Economic slowdowns in some BRICS member countries could impact the group’s collective economic objectives. | Boost intra-BRICS trade and investments to reduce reliance on external economies and stimulate internal growth. |
| Power Imbalance | The dominance of China, India, and Russia in BRICS could limit the influence of smaller members like Brazil and South Africa. | Empower smaller members through initiatives tailored to their priorities, ensuring equal influence within BRICS. |
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