BRICS Grain Exchange

Why in News?

Prime Minister Modi met Russian Deputy PM Dmitry Patrushev at World Food India 2025, discussing a proposed BRICS Grain Exchange to boost agricultural trade, ongoing India–Eurasian FTA talks, and strengthening cooperation in agriculture, fertilizers, and food processing ahead of the annual summit.

Description:

• Announced at the 16th BRICS Summit, Kazan (2025) as part of the BRICS+ initiatives.
• Designed to strengthen food security, enhance agricultural trade, and reduce dependence on Western-dominated commodity markets.

Key Features:

• Objective: Create a platform for grain trade and pricing among BRICS and BRICS+ countries.
• Food Security: Ensures predictable supply chains for essential grains (wheat, rice, maize, etc.).
• Price Discovery: Provides a transparent mechanism for pricing, reducing volatility linked to Western markets (e.g., Chicago Board of Trade).
• Decentralization: Promotes alternative to dollar-based grain trade by encouraging transactions in local currencies.
• Agricultural Cooperation: Facilitates sharing of technology, logistics, and storage infrastructure among members.

Significance:

1. Global Food Security:
   1. BRICS+ includes major food producers (Russia, Brazil, India) and major consumers (China, Egypt, Ethiopia).
   1. Helps stabilize global supply in times of crisis (Ukraine war, climate shocks).
2. De-dollarization:
   1. Grain trade settlement in domestic currencies aligns with BRICS’ push for de-dollarization.
3. Alternative to Western Exchanges:
   1. Reduces reliance on Western-dominated markets (e.g., CBOT, Euronext).
4. Support for Global South:
   1. Offers fairer access to grain markets for developing countries vulnerable to food inflation.

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