India, Russia discuss creation of BRICS Grain Exchange
Context:
Prime Minister Narendra Modi met Russian Deputy PM Dmitry Patrushev during the World Food India 2025 event in New Delhi.
Talks focused on boosting India–Russia agricultural and trade ties, and also on strengthening BRICS-level cooperation.
The two sides discussed the ongoing work on a Free Trade Agreement between India and the Eurasian Economic Union.
The 2024 BRICS Kazan Declaration endorsed an initiative to establish a BRICS Grain Exchange as part of their effort to “develop a fair agricultural trading system.”
This idea is a Russian initiative first proposed by Eduard Zernin, Chairman of the Board of Russia’s Union of Grain Exporters, to Russian President Putin in March.
The Kazan Declaration described the exchange as a platform for trading grain commodities within BRICS, with potential future expansion into other agricultural sectors.
Why BRICS wants a Grain Exchange
Today, there are 40+ commodity exchanges worldwide, but most are domestic (serving only one country, priced in local currencies).
Even in Africa and Asia, where exchanges exist, they are mostly small and fragmented.
Brazil (among BRICS) is the only one with a globally integrated grain exchange.
This creates a gap in the Global South, where producers and consumers lack a strong, large-scale, South-led platform to trade grains.
BRICS Advantage
BRICS (expanded) = 44% of world’s grain production & consumption + 25% of global grain exports.
Brazil & Russia → major global grain producers/exporters.
China, India, South Africa + new members → huge food import markets.
This combination gives BRICS a self-sustaining internal market to run such an exchange successfully.
Strategic Value
Reduce dependence on Western-dominated exchanges (like Chicago Board of Trade).
Promote local currencies in trade (instead of dollar/euro), aligning with BRICS’ push for de-dollarisation.
Food security buffer for Global South nations, especially during crises (war, sanctions, supply chain disruptions).
Challenges
Currency choice not finalised → Kazan Declaration discussed payments systems (like BRICS Pay, BRICS Clear) but did not decide how the exchange will price grain futures.
Trust and governance issues → will all BRICS members agree on rules, transparency, and price discovery mechanisms?
Logistics & infrastructure → exchanges need warehouses, delivery systems, and international arbitration frameworks.
Market integration → Brazil’s exchange is globally integrated, but Russia, India, China, South Africa still run domestic-level platforms.
The Eurasian Economic Union (EAEU) is an international economic integration organization established by a treaty that entered into force in 2015, aiming to create a unified economic market for its members.
It facilitates the free movement of goods, services, capital, and labor, promotes coordinated policies, and aims to modernize economies for stable development and higher living standards.
The five member states are Armenia, Belarus, Kazakhstan, Kyrgyzstan, and the Russian Federation.
Establishment:
Formed by the Treaty on the Eurasian Economic Union, signed in 2014 and entered into force in 2015.
Headquarters:
Moscow, Russia, houses the headquarters of the EAEU and the Eurasian Economic Commission
BRICS
Full form: Brazil, Russia, India, China, South Africa (+ new members).
Founded: 2009 (Yekaterinburg, Russia).
Original members: Brazil, Russia, India, China.
South Africa joined in 2010 → became BRICS.
Expanded members (2024): Egypt, Ethiopia, Iran, UAE
Jan 2025: Indonesia.
Current members (2025): 10 countries.
Chairmanship (2025): Brazil (Lula da Silva).
Nature: Intergovernmental organisation for political & economic cooperation.
Note: Saudi arabia yet to formally join BRICS
Key Institutions
New Development Bank (NDB) – HQ: Shanghai (funds infra & sustainable projects).
Contingent Reserve Arrangement – $100 bn pool to stabilise currencies.
BRICS Pay / BRICS Clear / BRICS Cross-Border Payments – alternatives to SWIFT, push for de-dollarisation.
Annual Joint Statistical Publication – harmonised data.
Other platforms: Business Council, Think Tanks Council, Women’s Business Alliance.
Major Initiatives
2014 Fortaleza Summit – launched NDB & Reserve Pool.
BRICS Cable (proposed) – submarine optic fibre project (later abandoned).
BRICS Satellite Constellation (2021) – shared remote sensing data.
BRICS Games (2024, Russia) – cultural & sporting soft-power.
Deep-Sea Research Centre & Digital Ecosystem Network (2024 Kazan).
BRICS nations account for:
~42% of global population.
~31–32% of world GDP (PPP terms even higher).
~25% of global trade.