The trade and financial sanctions imposed by the US, UK, EU, and other countries on Russia following its current conflict with Ukraine have opened a plethora of avenues for Indian businesses across various sectors, and Indian companies are too excited to tap on the huge potential available for Indian products in Russia.
Inquiries pouring in from Russia has around 50 Indian food, ceramics, and chemicals exporters heading to the country hit by sanctions after it attacked Ukraine 2 months ago.
An official from Fieo said that several inquiries have come from Russia, especially for food products, tea, and coffee. For instance, Russian supermarket chain X5 has approached Indian exporters to buy everything from rice, detergents, tea, coffee, fruits, textiles, soda, and beer. In the case of chemicals, the demand is higher for industrial chemicals, a segment where China is the largest exporter.
While new opportunities have opened up, exporters have to tackle key challenges such as shipping routes, insurance, and payment.
Exporters say, as far as a payment mechanism is concerned, we will strictly follow the government guidelines and suggestions. Although there are payment options for certain segments that are being used at the moment, more clarity will be obtained once RBI and the government firm up the plan in consultation with Russian authorities.
The exporter also believes that there is a need for relaxation in custom laws, and compliances such as labeling.
Due to sanctions in Russia, the demand for Indian wheat and corn from other parts of the world has also shot up. The sanctions exempt product categories like Food, pharma, and oil.