RUSSIA
India-Russia Agriculture Trade: A Growing Opportunity with a Focus on Peanuts
The agriculture trade between India and Russia has seen consistent growth over the past few years, driven by both countries' strategic efforts to strengthen bilateral relations. While energy and defense have traditionally dominated India-Russia trade, agriculture and food products are emerging as high-potential sectors. Among these, peanuts have become a significant commodity, with India being one of the world's largest producers and exporters.
This blog explores the trends, trade volumes, and prospects of agricultural trade—particularly the peanut trade between India and Russia—while highlighting varieties of peanuts, market demand, and the potential for future expansion.
India-Russia Agriculture Trade: An Overview
India and Russia have shared a strong diplomatic and economic relationship for decades. In recent years, agriculture has become a central pillar of this partnership. According to the Ministry of Commerce and Industry of India, bilateral trade between India and Russia touched $65 billion in 2023, with agriculture forming a steadily growing segment.
Key Indian agricultural exports to Russia:
- Peanuts
- Tea and Coffee
- Spices
- Rice
- Fruits and Vegetables
Meanwhile, India imports sunflower oil, fertilizers, and wheat from Russia, creating a complementary trade balance.
Peanut Trade Between India and Russia: Rising Demand
India is the second-largest producer of peanuts globally, and Russia is emerging as a promising market due to increasing demand for plant-based proteins, edible oil, and snack-grade peanuts.
Growth in Peanut Exports
As per APEDA (Agricultural and Processed Food Products Export Development Authority), India exported over 650,000 metric tons of peanuts globally in 2023. Russia's share in Indian peanut exports has steadily risen, reaching over 35,000 metric tons in 2023—up by nearly 28% from the previous year.
Why Russia is Buying More Indian Peanuts:
- Competitive pricing
- High oil content and quality
- Strong shelf life for processed peanuts
- Russia's growing peanut butter and confectionery industry
- Reduced imports from other nations due to geopolitical issues
Types and Varieties of Peanuts Exported from India
India offers a wide range of peanut varieties catering to different needs—be it for edible consumption, oil extraction, or snack processing.
Popular Peanut Varieties:
Bold (Runner) Peanuts
- Large kernels
- High oil content
- Ideal for peanut butter and roasting
- Size: 40/50, 50/60, 60/70 counts per ounce
Java Peanuts
- Smaller kernels
- Sweeter taste
- Popular in confectionery and snacks
TJ (Java Type) Peanuts
- Hybrid variant of Java
- Spherical shape
- High protein value
Red Skin Peanuts (Spanish Type)
- High oil content
- Used in oil crushing and roasting
These varieties are mostly sourced from Gujarat, Andhra Pradesh, Tamil Nadu, and Rajasthan, with Gujarat alone contributing over 40% of India's peanut production.
Export Standards and Certifications
To ensure smooth trade, Indian peanut exporters comply with international standards, including:
- AFI (American Food Industries) Grade Standards
- EU Pesticide Residue Limits
- BRC, HACCP, and ISO certifications
Future Outlook: Strengthening India-Russia Peanut Trade
India and Russia are actively working on trade corridor improvements like INSTC (International North-South Transport Corridor) which will reduce shipping time and costs. This makes Indian agricultural products—especially bulk commodities like peanuts—more attractive in the Russian market.
Moreover, there's rising demand for organic and value-added peanut products such as:
- Peanut Butter
- Roasted & Salted Peanuts
- Blanched Peanuts
- Peanut Oil