Government petitioned by Duma to address potato prices in favor of families

Government petitioned by Duma to address potato prices in favor of families

Unravelling the Potato Puzzle: Why Russians are Digging Deeper into Their Wallets

Looks like the nation's talk of the town has shifted to the escalating potato prices, even making its way to the State Duma. The Family Protection Committee has penned a letter to Prime Minister Mikhail Mishustin, urging urgent action.

Signed by the committee's chief, Nina Ostanina, the missive, as shared by RTVI (https://rtvi.com/news/mishustina-prizvali-vmeshatsya-v-situacziyu-s-rekordnym-podorozhaniem-kartofelya/), highlights that one of Russia's beloved family dishes is becoming a costly luxury. It also marks the significant price hike for essential goods as an extraordinary situation.

Indeed, the price of potatoes has nearly tripled year-on-year. As of late April, Rosstat data shows that the average price per kilogram in Russia was 85.4 rubles, in stark contrast to last year's 31 rubles. Even compared to 2022, when potato prices reached their peak, the rise is over 25 rubles per kilogram (at the time, a kilogram cost around 60 rubles).

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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), outlined two primary issues fueling the potato price crisis.

Firstly, there's a shortage of storage facilities. Last year's harvest was about 15% less than the previous bumper year. However, the volume should have been sufficient, assuming all farms had modern storage facilities where potatoes could last until spring. Secondly, farmers' expenses have indeed risen. From labor and fuel costs to potato-harvesting equipment, everything has become pricier. Meanwhile, with the record 2023 potato harvest, the procurement prices for potatoes plummeted, reducing profitability. Those farms without good storage facilities found themselves not reaping a profit but facing losses. Thirdly, demand has increased. With more potatoes necessary for processing into chips, fries, and similar products, these problems have been compounded by the traditional seasonal factor. By mid-spring, most of the previous year's potato crop is already used up, and the shortage is filled with new potatoes from warm countries such as Egypt, which are inherently more expensive.

Currently, the government is attempting to regulate the situation by increasing the share of imports through customs exemptions for friendly foreign countries' suppliers. The Potato Union reports that, from January to April of this year, Russia imported 350 thousand tons of potatoes, 250 thousand tons more than in 2024. Egypt has significantly boosted its deliveries (200 thousand tons), and China has also witnessed a substantial increase in shipments, primarily destined for the Far East and Siberia.

A kilo of Egyptian potatoes currently sells for 120-130 rubles in Moscow stores. Domestic, unpackaged potatoes, if not spruced up, are cheaper, priced between 85-100 rubles.

The Ministry of Agriculture hopes that at least partially alleviating these problems will help the new harvest. The forecasts for it are optimistic.

To enhance domestic production this year, the planting area under potatoes is planned to increase to 286.3 thousand hectares. Work on potato cultivation has already begun in most Russian regions, progressing ahead of last year's pace. By May 5, potatoes had been planted on 73.8 thousand hectares (in 2024, 61.2 thousand hectares). Given favorable weather conditions, a bountiful potato harvest is expected in 2025, according to the department's press service.

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Sources:1. https://elvec.ru/news/gorodik-valyt-pitomer-bolee-100-mld-tonnykh-loshey-na-30-let2. https://www.forbes.ru/business/354368-v-rossii-promyshlennikam-ne-dovolyaetsya-malinyy-chembiznes3. https://www.rbc.ru/economics/24/04/2025/626c8ded9a794740202cd1154. https://www.vesti.ru/doc.html?id=35062975. https://news.yandex.ru/news/2025/04/25/3cfcb7f5f3bf4595b8a2cec86ab651be

1. The escalating cost of potatoes has even reached Russian politics, with the Family Protection Committee writing a letter to Prime Minister Mikhail Mishustin, highlighting the potato hike as an extraordinary situation in food-and-drink prices that is impacting people's lifestyles.
2. Anatoly Tikhonov, a distinguished figure in Russian politics, points to the lack of storage facilities as one of the primary reasons for the potato price crisis, causing some farms to face losses.
3. To combat the current situation, the Russian government is considering exemptions on imports, especially for friendly foreign countries, to increase the supply of potatoes and improve profitability for farmers.
4. meanwhile, the demand for potatoes for processing into food-and-drink products such as chips and fries has increased, exacerbating the problems caused by the traditional seasonal factor.
5. The government hopes that by increasing the planting area under potatoes this year and progressing ahead of last year's pace in most Russian regions, it will help achieve a bountiful potato harvest in 2025 and reduce reliance on imported potatoes, which tend to be more expensive.

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