Russia and India are actively increasing their collaboration on developing the agricultural sector, forming a unified agro-industrial production chain based on equal partnership and enhancing synergistic effects for both countries. Russia supplies quality, environmentally friendly fertilizers to the Indian market, being a reliable partner for India in strengthening its food sovereignty, said Andrey Guryev, President of the Russian Fertilizers Producers Association, in an interview with BRICS Business Magazine.
The mineral fertilizer industry is traditionally a major driver of trade turnover between Russia and India. What can you say about this trend? Is it continuing?
India, as a country friendly to Russia, has been a leader in the supply dynamics of Russian mineral fertilizers in recent years. The share of our products in Indian imports last year reached 4.7 million tonnes, which is 4.3 times more than in 2021.
The increasing Russian fertilizers supply trend to the Indian market is continuing. The corresponding task of meeting the demand for these products from Indian farmers was set by the President of Russia, Vladimir Putin, during last year’s BRICS summit in Kazan. We have not only fulfilled the demand initially indicated by the Indian side but exceeded it 1.5-fold. In December-February, about 1.5 million tonnes of complex and compound fertilizers were supplied to India.
Overall, in the first half of this year, 20% more fertilizers were shipped to Indian partners than last year, already 2.5 million tonnes. The main contribution to this supply increase was made by producers of phosphorus-containing fertilizers. As a result, in the first six months, the share of Russian fertilizers in India’s total imports of agrochemical products grew to a record 33%. This means that one in every three tonnes of fertilizers imported by India comes from Russia.
I would also like to note that Russia is a key global exporter to India of NPK, which are complex mineral fertilizers containing three main elements: nitrogen, phosphorus, and potassium. The share of Russian NPK in total imports of this type of fertilizer is almost 90%.
A very important aspect of this collaboration consists in the obvious synergy between our countries in the agro-industrial complex.
How does this manifest itself?
To begin with, I should note that this collaboration between Russia and India has the most solid foundations. Our country is a recognized leader with an 18% share of the global mineral fertilizer market. At the same time, Russia is the only country that fully provides domestic farmers on the priority domestic market with all the requisite types of mineral fertilizers. Besides that, it is a major exporter of these produces, supplying more than 100 countries.
In turn, India is the No. 2 importer of mineral fertilizers in the world. Annually, with its population of 1.4 billion, it imports more than 22 million tonnes of fertilizers. Russia’s share in Indian imports on an annual basis traditionally amounted to 20-25%.
India is not just a major food consumer but also a country with enormous agro-industrial potential. For example, over 130 million tonnes of rice alone are grown here, this being twice as much as 20 years ago. Russia, meanwhile, having increased supplies of agrochemicals to India sixfold over just the past ten years, is helping to realize the potential of this country friendly to us.
What prevents us from increasing our cooperation faster, from realizing the potential more actively?
The main thing is that we are ready to increase further our exports of mineral fertilizers to the Indian market. At the same time, trade barriers constitute a certain constraining factor on supply increases.
Here I am talking primarily about India’s 5.5% duty on mineral fertilizers imports. This raises the cost of our products for local farmers and end consumers of food in India. So, its abolition would unequivocally benefit Indian farmers, in terms of both price and the opportunity to make greater use of highly effective, environmentally friendly Russian fertilizers. Their use does not carry a risk of soil pollution and helps produce agricultural products that are safe for human consumption, as is confirmed by numerous expert examinations, experience, and results in other countries.
In this respect, we deem it expedient to intensify work on concluding an agreement on setting up a free trade zone between the EAEU and India. After all, Russian environmentally-friendly mineral fertilizers are key to providing this friendly state with safe and high-quality food products.
How do you assess the potential and effectiveness of BRICS as a platform for such interaction?
BRICS is undoubtedly a very important platform. For the mineral fertilizer industry, BRICS countries are key supply destinations after the strategically priority domestic market. One in every three tonnes of agrochemicals imported by BRICS members is produced in Russia. In the first half of the year, we increased supplies to BRICS countries by approximately another quarter.
Russian producers of mineral fertilizers are perfectly aware that every gram of fertilizer is a gram of responsibility. We feed not only the fields but also the people. We don’t just ensure the harvest but also create confidence in the future. After all, true food security is when every child knows the taste of bread grown in their own country. So, we are ready to continue to provide reliable support for friendly states, primarily our strategic partners, India, Brazil, and other BRICS countries in strengthening their food sovereignty.
