Tubers and life: in Russia they want to introduce state regulation of potato prices
In Russia, they propose to introduce state regulation of potato prices. Since the beginning of the year, its value has increased by 24%, and by 92% in 2024. Deputy Speaker of the State Duma Boris Chernyshov asked the Ministry of Economic Development to take measures to stabilize the cost of vegetables. He draws attention to the fact that potatoes are a socially significant commodity, the cost of which can be regulated by the state. The FAS told Izvestia that agreements on limiting potato prices have already been concluded in 30 regions and there is a positive effect compared with other regions.
Why are potatoes getting more expensive
In Russia, they propose to introduce a temporary price restriction for potatoes. Boris Chernyshov, Vice Speaker of the State Duma, made such a request to Maxim Reshetnikov, head of the Ministry of Economic Development.
"During 2024, this product became the most expensive among food products. According to Rosstat and the Central Bank, retail prices for potatoes increased by 92%: from 28 rubles in December 2023 to almost 57 rubles in December 2024. Potato prices will continue to rise in 2025," the text of the document, which is available to Izvestia, says.
The DEPUTY draws attention to the fact that the government decree establishes that marginal prices for certain socially important essential foodstuffs can be introduced for up to 90 days if their cost increases by 10% or more for 60 consecutive days, taking into account seasonal factors.
Potato prices have been rising in Russia since mid—October 2024, virtually simultaneously with the completion of its harvest. In one week of the month, potatoes increased in price by more than 5% in a number of regions. The largest increase was recorded in the Volgograd region — by 5.9%. The reasons were vegetable crop failure. In just 2024, the cost of a vegetable increased by 92%. To influence the situation, the government has adopted a resolution that allows 150 thousand tons of potatoes to be imported duty-free into the Russian Federation from January 1 to July 31. However, since the beginning of 2025, the weekly increase in the cost of vegetables has continued.
In his address, the Vice Speaker asks to monitor the price dynamics of potatoes, take into account possible seasonal fluctuations and, if the increase in cost is confirmed above the established parameters, initiate the process of introducing a temporary price restriction for this socially significant product.
— Potatoes are sometimes called the second bread, therefore, serious fluctuations in prices for this socially significant product significantly increase the burden on the budget of millions of families. This vegetable, which is traditionally considered an affordable food, has almost doubled in price in 2024 alone, and in 2025 the growth rate is accelerating. The cost, according to official data from Rosstat, has already increased by 23.9% since the beginning of the year. This poses a threat to food security, especially for poor citizens," Boris Chernyshov explained to Izvestia.
According to him, the temporary restriction of vegetable prices is a reasonable measure in such a situation, provided for by law. It is necessary to protect people from unjustified price increases of basic products and to prevent speculation, the deputy emphasized.
Prime Minister Mikhail Mishustin, speaking on March 26 with a government report to the State Duma, drew attention to the situation with food prices. In particular, he stated that it would be important to balance supply and demand in general and smooth out price fluctuations in order to avoid extremely sharp spikes.
— The Federal Antimonopoly Service has a significant role here, especially when it comes to essential products. The margins of intermediaries remain one of the significant factors of price growth. It is clear that the goods need to be beautifully packaged and delivered to the buyer, but the cost of these services should not exceed reasonable limits. Especially in conditions when our country is solving the most difficult tasks," Mikhail Mishustin noted.
He recalled that the FAS found that in some cases the margin on goods reaches 50%, as it was, in particular, with fish products. The Prime Minister also noted that "it is necessary to cooperate even more actively with all market players and, if necessary, take the most stringent measures." After all, the government has specifically provided the regions with serious tools and opportunities to work together with manufacturers, suppliers and retail chains to limit prices and margins, he stressed.
In accordance with the resolution of the Cabinet of Ministers, the introduction of a temporary restriction on the maximum allowable retail prices is set by the government. The Ministry of Economic Development is preparing proposals for their establishment based on Rosstat data, the FAS press service explained to Izvestia.
They also noted that the agency continuously monitors price dynamics for the entire basket of socially important food products, including potatoes.
— At the moment, a number of retail chains are voluntarily restraining margins on certain items of socially important food products, which include potatoes. In addition, regional authorities are actively using the mechanism developed by the department to stabilize prices for goods within the framework of Government Decree No. 662. They conclude agreements with business entities to limit prices/margins. As of March 2025, such potato agreements have been concluded in 30 regions of the country. In the regions where they operate, there is a positive effect in comparing price dynamics with regions where they were not included," the service stressed.
Izvestia sent a request to the Ministry of Economic Development with a request to comment on the situation with rising prices and the need to take action.
Measures to curb potato prices
The Ministry of Agriculture told Izvestia that last year Russia harvested potatoes at the level of average long—term values - 7.3 million tons were accumulated.
— This volume provides the main part of the internal needs. To increase potato production this year, its acreage will be increased by 6.5 thousand hectares and will exceed 286 thousand hectares, the ministry explained.
At the same time, they noted that, taking into account the reduction in the harvest in 2024, the Ministry of Agriculture, in order to provide additional support to the domestic market, established a tariff exemption for duty-free import of imported potatoes to Russia with a volume of no more than 150 thousand tons. The corresponding decision is valid until July 31, 2025.
— Currently, domestic potatoes are sold by producers at an average price of 32.5 rubles per 1 kg, which is 3 rubles higher than, for example, for the same period in 2022. Thus, a significant increase in prices is observed only in relation to the low base of 2023, due to the record potato harvest in the country. In retail, according to Rosstat, potatoes currently cost 69.9 rubles per 1 kg, the ministry noted.
They also said that the Ministry of Agriculture, together with the Ministry of Industry and Trade, are systematically working to transfer manufacturers and retail chains to direct long-term supply contracts. This makes it possible to ensure predictable production volumes and low price volatility in retail, and helps to maintain a stable market situation for potatoes, vegetables and a number of other products.
As an official from one of the federal agencies told Izvestia, the current dynamics of potato prices is due to seasonal factors. To expand the supply, a tariff exemption for the import of root crops has been introduced. As the market becomes saturated with products, prices for them will stabilize, he noted.
According to the Chief of Staff of the Potato and Vegetable Market Participants Union (Potato Union) Tatiana Gubina, there are several reasons for the price increase. First of all, half of the potatoes that are currently on the shelves are imported. Secondly, there is not much left of the Russian root crop of network quality, which would correspond to the calibration required for retail. In addition, the cost includes the fact that the vegetable is washed, packaged, as well as storage costs, which are now quite high.
According to her, as for additional measures to curb prices, apart from increasing imports, it is probably difficult to do anything now. But this may have a negative impact on domestic potato producers, Tatiana Gubina noted.
— Now we have potatoes in our leftovers, which are not taken by retail chains. This may be where you need to make some kind of decision on putting this product on the shelves. Of course, businesses have to do this themselves, but the government could support them. So that the volume, range and cost of products are fixed in the so-called long contracts. Our union has put forward this initiative, but unfortunately, the process is moving very slowly. It's more of an initiative for the next harvest," the expert explained.
Potato imports in Russia are decreasing annually. So, according to the Rosselkhoznadzor, 387 thousand tons of this vegetable were imported into the country in 2024, 446 thousand tons in 2023, and 708 thousand tons of culture in 2022. As stated earlier in the Ministry of Agriculture, by reducing imports, the ministry sought food security. But in 2024, the weather seriously let us down. Farmers harvested potatoes in the amount of 7.3 million tons against 8.5 million tons in 2023.
Sergey Korshunov, Chairman of the Board of the Union of Organic Farming, called the current price increase seasonal. At the same time, he noted that most of the potatoes in Russia are produced by small and medium-sized agricultural enterprises that need financial support.
Potatoes are socially important products, and in order to keep prices down, the state needs to compensate for part of the cost of its production, the business representative explained.
— Average wholesale prices for potatoes in Russia today are at 36 rubles per 1 kg. The record harvest and the low base of 2023, when the selling price of producers actually coincided with the cost price, led to a reduction in acreage and gross potato yields in 2024," Dmitry Leonov, deputy chairman of the Board of the Rusprodsoyuz association, explained the reasons for the price increase to Izvestia.
According to him, traditionally, after high prices associated with a decrease in the gross harvest of crops, farmers expand their acreage, and after low prices they reduce it. Therefore, the acreage this season is likely to be diversified, said the representative of the business.
He also said that we should not forget about the impact of imports. As a rule, the main volume of imports of this vegetable falls on February – June. During this period, the supply of potatoes from our own production usually decreases, and prices for young imported potatoes in the spring can significantly exceed the cost of domestic potatoes from the previous harvest, Dmitry Leonov explained.
Izvestia also sent a request to the Association of Retail Trade Companies (ACORT).
Everyone was waiting for a rise in prices due to crop failure, and it happened, although only 1 million tons were not harvested, Leonid Kholod, ex-Deputy Minister of Agriculture, Doctor of Economics, told Izvestia.
— Along with the abolition of the duty on potatoes, it was necessary to facilitate access to the market for private traders who also grow a significant amount of this vegetable. In addition, the decision to cancel the duty should have been taken in the fall, and not from January, because the imported root crops of last year's harvest in neighboring countries had already ended by the new year, the expert explained.
Therefore, according to him, vegetables are now being brought to Russia from more remote countries such as Egypt and Turkey. This is a more expensive product, Leonid Kholod noted. In addition, new potatoes are now being imported into the Russian Federation, which is already more expensive and not always of high quality. In his opinion, Russians should expect a reduction in vegetable prices no earlier than July, when their harvest will appear.
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