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Russian economy shocked: India wants to be paid for tea in rupees

Modern Russian economy can leave the inhabitants of the Russian Federation without their favorite tea. Due to the constant fluctuations of the ruble the suppliers from India require to be paid in rupees.

Indian exporters working with Russia have addressed to the Ministry of Commerce of India with a proposal to create for them a mechanism of payment in rupees. The reason – constantly falling Russian ruble.

Earlier, the trade has been carried out in dollars. However, since the Russian currency can change its rate to the dollar several times a day, it is disadvantageous not only for Russians but for Indians – they may miscalculate the price.

Modern Russian economy is extremely dependent on Indian import. For only half of the last year, the export of Indian tea to Russia has amounted to about 18 million kg despite the growth of the price of tea of 161 rupees (about 148 rubles) per 1 kg in 2013 compared to 176 rupees (about 162 rubles) per 1 kg in 2014.

Delhi believes that the introduction of the Iranian payment system will have a positive effect on the trade with Russia. By the way, Indians sell tea to Delhi at the price in the national currency and not in dollars.

General Secretary of the Indian Tea Association Monojit Dasgupta said that a joint group of representatives of both countries have already developed a mechanism for the change of payments and was going to send the draft to the Indian Commerce Minister Nirmala Sitharaman.