Potato prices in Russia have been steadily climbing for the third consecutive week, despite the harvest season drawing to a close. According to the Federal State Statistics Service (Rosstat), the price of potatoes saw a 1.3% increase from October 8 to 14, followed by a 2% rise from October 15 to 21, and another 3.1% increase from October 22 to 28. This consistent upward trend has resulted in a staggering 54.7% price increase for potatoes since the beginning of the year.
Producers cite a combination of factors contributing to this price surge. A reduction in planting areas, attributed to various economic and environmental pressures, has played a significant role. Unfavorable weather conditions, which can impact yields and quality, have also contributed to the price increase. Furthermore, rising transportation costs, a consequence of global inflation and fuel price fluctuations, have further exacerbated the situation.
The situation is compounded by the fact that last year’s record potato harvest, reaching 8.6 million tons, resulted in a wholesale price of only 0.11 euros per 1 kg for producers. This meant that many agricultural producers were selling their potatoes at or below cost, creating a challenging financial environment. As Alexey Krasilnikov, the executive director of the Potato Union, explains, “Compared to last year’s level, there is a price increase.”
Sergey Korshunov, head of the Organic Farming Union board, adds that this year’s potato harvest has been smaller than last year due to weather conditions. He also points out that the cost of production is increasing due to high interest rates on loans, further impacting the profitability of potato farming.
The continued rise in potato prices is a significant concern for consumers in Russia, as potatoes are a staple food item. It remains to be seen how these price increases will impact consumer spending and the overall food market in the coming months.
