India finalises barter deal with Russia to import fertilisers

New Delhi, May 30: India has finalised a barter deal with Russia for supply of fertilisers as talks concluded on a multi-year import deal.

The supply of fertilisers becomes important since half of the Indian population depends on the same. In February India opened government to government talks with Russia for the long term import of fertilisers.

Russia will now supply crop nutrients through a barter system avoiding Dollar transactions due to US sanctions owing to the ongoing war in Ukraine.

"India is 2nd largest importer aiming for 1 million tonnes of di-ammonium phosphate (DAP) and potash; and about 800,000 tonnes of nitrogen, phosphorus, potassium (NPK) from Russia every year," Velina Tchakarova, the director of Austrian foreign policy think tank AIES said in a tweet.

Russian importers will now import fresh farm produce, medical devices, auto parts and other commodities from India under the barter, a report in the Hindustan Times said.

Finance Minister, Nirmala Sitharaman had said in a tweet, " despite rising fertiliser prices globally, we have protected our farmers from such price hikes. In addition to the fertiliser subsidy of Rs1.05 lakh crore in the budget, an additional amount of Rs1.10 lakh crore is being provided to further cushion our farmers,"