As global trade landscapes evolve, India’s food and beverage (F&B) exports to Russia are gaining prominence, driven by geopolitical shifts and Russia’s pivot toward non-Western suppliers following Western sanctions. This article delves into the dynamics of India’s F&B exports to Russia under HS Code 02–22 (excluding HS ’05 and ’06), analyzing recent trends, key product categories, and strategic adjustments needed to sustain growth.
With bilateral trade reaching US$ 68.7 billion in FY 2024-25, the F&B sector, valued at US$ 765.3 million in 2024, is poised for expansion amid new opportunities and challenges. The 2014 sanctions on Western imports and the ongoing Russia-Ukraine conflict have opened opportunities that India is increasingly filling with diverse products like seafood, tea, and processed foods. This analysis draws on recent trade data and industry insights to explore how India can strengthen its foothold in Russia’s food import market by 2030.
Image Source : Freepik
The Russian market for food and beverage (F&B) products is a significant and dynamic arena, making it a critical player in global food trade. Its importance stems from Russia’s vast population of over 144 million, coupled with a growing demand for diverse and high-quality food products, exacerbated by sanctions that have restricted access to traditional Western suppliers since 2014. This has created opportunities for countries like India to meet needs for staples, specialty items, and processed goods. Russia’s strategic location and its integration into the Eurasian Economic Union further enhance its market potential, offering a gateway to a broader regional consumer base.
India’s F&B exports to Russia under HS Code 02–22 (excluding HS ’05 and ’06) have shown resilience, rising from US$ 549.45 million in 2018 to US$ 765.3 million in 2024, with a 5-year compound annual growth rate (CAGR) of approximately 5.6%, as per trade data. The 2020 dip to US$ 503.1 million due to the global pandemic was followed by a robust recovery, reaching US$ 728.4 million in 2023, reflecting Russia’s growing reliance on Indian supplies post-2014 sanctions. The product mix is diverse, with frozen shrimps and prawns leading at 16.1%, followed by black fermented tea at 9.3%,according to 2024 market shares. Rice and fresh grapes also contribute significantly, indicating a balanced export portfolio that aligns with Russia’s demand for both staples and specialty items.
India’s top F&B exports to Russia from 2022 to 2024 were led by crustaceans (HS 0306) at US$ 124.1 million (5-year CAGR: 9%) and rice (HS 1006) at US$ 70.7 million (5-year CAGR: 12%). Strong growth was also seen in groundnuts (HS 1202), vegetable fats (HS 1515), and prepared fruits and nuts (HS 2008), with 5-year CAGRs of 15%, 22%, and 38% respectively. Vegetable extracts (HS 1302) and other oil seeds (HS 1207) showed steady performance. However, tea (HS 0902), coffee/tea extracts (HS 2101), and frozen bovine meat (HS 0202) witnessed a decline. Grapes (HS 0806) dipped slightly. Overall, the basket reflects a mix of rising niche categories and declining traditional exports.
Source: ITC Trade Map (4 digits HS Code)
Bilateral trade reached US$ 68.7 billion in FY 2024-25, with F&B exports contributing US$ 765.3 million. The 2024 India-Russia trade agreement and the proposed Eurasian Economic Union (EAEU) Free Trade Agreement aim to boost this to US$ 100 billion by 2030. The rupee-ruble payment mechanism, facilitated by banks like Sberbank, has mitigated challenges from Russia’s SWIFT exclusion. The Indian Embassy in Moscow and events like WorldFood Moscow have further strengthened trade ties by connecting exporters with Russian buyers.
By 2030, India’s F&B exports to Russia could exceed $1 billion, driven by sustained demand for seafood, rice, and processed goods, with potential to reach US$ 1.2 billion if strategic initiatives are fully realized. The proposed agro-industrial park in Russia’s Lotos zone offers a transformative opportunity to localize production, reducing reliance on imports and enhancing supply chain resilience. Investments in cold storage and transportation infrastructure along the International North-South Transport Corridor (INSTC) could cut logistics costs by up to 30%, boosting competitiveness. Expanding into high-value segments like organic dairy and health-focused snacks, aligning with Russia’s growing consumer preferences, will be key. Collaboration with Russian retailers and leveraging certifications from Rosselkhoznadzor can further solidify market access. Addressing quality compliance and fostering public-private partnerships will be critical to tapping into Russia’s food import market, positioning India as a long-term strategic partner
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