Russia is grappling with an unprecedented potato price crisis, with costs soaring to record levels. According to Russia’s Federal Statistics Service, potatoes have seen the steepest price increase among all food products, driven by poor harvests in 2024 and worsening food inflation. As of April 28, 2024, the average retail price hit 84.7 rubles (USD 1) per kilogram, a 49% increase since the start of the year—and a staggering 173% higher than the previous year, the highest jump since records began in 2002.
Government Measures Fall Short
To curb the crisis, the Kremlin has taken emergency steps, including:
- Lifting the 5% import duty on potatoes.
- Approving duty-free imports of up to 150,000 tons, with China, Egypt, and Uzbekistan increasing shipments.
- Planning to double the duty-free quota if prices remain high.
Despite these efforts, Bloomberg reports that retail prices in many supermarkets have already exceeded 100 rubles (USD 1.20) per kilogram, well above official averages.
Weather Risks and Market Uncertainty
Agriculture Minister Oksana Lut remains optimistic, stating that early harvests in July and ongoing imports could ease prices. However, potatoes are highly sensitive to drought, and dry conditions could further strain supply.
Russia’s potato crisis highlights the fragility of its food supply chain. While imports and early harvests may provide short-term relief, long-term solutions—such as improving domestic yields and storage infrastructure—are crucial to prevent future shocks.
