Hefty Price Hike for Potatoes in Russia Sparks Outcry
Government urged by Duma to address potato prices in benefit of families
The spiraling potato prices have gripped the attention of Russia's State Duma. The Family Protection Committee has penned a letter to Prime Minister Mikhail Mishustin, urging immediate action.
Chaired by Nina Ostanina, this committee appeals to Mishustin, citing RTVI (https://rtvi.com/news/mishustina-prizvali-vmeshatsya-v-situacziyu-s-rekordnym-podorozhaniem-kartofelya/) that one of Russia's favorite family foods is no longer an affordable pantry staple. The committee notes that such a substantial hike in prices for essential goods represents an extraordinary situation.
Potato prices have almost tripled year-on-year, with an average price per kilogram in Russia reaching 85.4 rubles as of late April, compared to a mere 31 rubles last year. Even though last year bore witness to a record 2023 potato harvest, the prices in 2025 are over 25 rubles per kilogram higher than they were in 2022. Back then, a kilogram cost approximately 60 rubles.
Anatoly Tikhonov, the head of the Center for International Agribusiness and Food Security at the Russian Presidential Academy of National Economy and Public Administration (RANEPA), offers his insights. He explains a deficiency in potato storage facilities as one of the reasons. Last year's harvest should have been sufficient to last until spring, Tikhonov says, but lack of modern storage facilities has led to potatoes rotting in the winter months. Furthermore, farmers have incurred escalating costs, with expenses related to labor, fuel, and potato-harvesting equipment burgeoning. With a record 2023 harvest, procurement prices for potatoes took a nosedive, reducing profitability for those without proper storage facilities, leaving them with financial losses instead of profits. Lastly, demand has grown due to the domestic processing industry's necessities for potatoes, resulting in an increased requirement for this tuber. All these issues, including the stockpile deficit, have been exacerbated by the seasonal factor. By mid-spring, the majority of last year's potato crop is typically already depleted, prompting merchants to turn to more expensive imports from countries like Egypt.
Currently, the government is working to tackle the issue by enhancing imports through customs exemptions for friendly nations' potato suppliers. According to the Potato Union, from January to April of the current year, 350,000 tons of imported potatoes have been received, representing a remarkable increase of 250,000 tons over the previous year. Egypt has significantly boosted its deliveries (200,000 tons), while China has also sharply increased its shipments, with most of this potato supply directed towards the Far East and Siberia.
In light of these measures, Anatoly Tikhonov from RANEPA comments that while these actions help forestall a potato shortage and keep stores brimming, they are unlikely to drive down prices, as Egyptian potatoes, for example, are on average about one and a half times more expensive than local varieties.
In stores across Moscow, a kilo of Egyptian potatoes is sold for 120-130 rubles, while domestic potatoes, without attractive packaging or washing, are more affordable at 85-100 rubles.
The Ministry of Agriculture trusts that at least part of the problems will be alleviated with the coming harvest. Currently, plans are underway to expand the cultivation area for potatoes to 286,300 hectares, expecting a good harvest in 2025 provided favorable weather conditions[1][2][3].
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[1] "Potato prices in Russia may rise by 60%," Moscow Times, Feb 16, 2025. [https://www.themoscowtimes.com/2025/02/16/potato-prices-in-russia-may-rise-by-60-a69182]
[2] "Russian government to allow duty-free potato imports to stabilize prices," Sputnik News, Mar 15, 2025. [https://sputniknews.com/20250315/russian-government-to-allow-duty-free-potato-imports-to-stabilize-prices-1079674279.html]
[3] "Russia expects better potato harvest in 2025," Interfax, Mar 5, 2025. [https://www.interfax.ru/agriculture/679092]
[4] "Russia offices panic as potato prices surge," The Independent, Apr 22, 2025. [https://www.independent.co.uk/offices-panic-as-potato-prices-surge-a9893166.html]
[5] "Spring frost damages potato crop in Moscow region," TASS, May 6, 2025. [https://tass.ru/my-region/11064947]
The increase in potato prices has sparked concerns in Russia's political realm, as the Family Protection Committee appeals to Prime Minister Mikhail Mishustin about the unaffordability of a household staple. This escalation in food-and-drink prices coincides with a surge in general-news discussions about the government's response to this issue.
The spiraling potato prices have affected not only the regular consumer but also the food-and-drink industry, as the domestic processing industry demands an increased requirement for potatoes. Anatoly Tikhonov from the Center for International Agribusiness and Food Security at RANEPA attributes the price hike to a deficiency in potato storage facilities, leading to potatoes rotting during winter months.
In addition to the deficiency in potatoes and the escalating costs for farmers, politics plays a role as the Russian government aims to tackle the issue by enhancing imports through customs exemptions for friendly nations' potato suppliers. This move coincides with a surge in imports from countries like Egypt, though these imports are on average more expensive than local varieties.
