Russian potato prices have risen by 24% since the start of the year and are expected to increase by 92% in 2024, according to experts. In light of this, a proposal has been made to introduce a temporary cap on potato prices. The proposal was submitted by Boris Tschernyschow, the deputy speaker of the State Duma, to Maxim Reschetnikow, the head of the Ministry of Economic Development.
According to the newspaper Izvestia, the deputy speaker drew attention to a government decree that allows for the introduction of a maximum price for certain socially important food products for a period of up to 90 days if their price increase within 60 consecutive days exceeds 10%, taking into account seasonal factors.
The deputy speaker requested in his statement to monitor the price dynamics of potatoes, taking into account seasonal fluctuations and to initiate the procedure for introducing a temporary price ceiling for this socially important product in the event of a confirmed cost increase beyond the set limits.
As Tschernyschow himself stated in an interview with Izvestia, the constant rise in potato prices is a burden on the budgets of many millions of families, simply because this vegetable is essential. The deputy speaker also stated that, without state regulation, potato prices will continue to rise even faster and stronger than in the previous year, which poses a threat to food security, especially for low-income citizens.
The proposed regulation aims to prevent “unjustified” price increases for essential products and to eliminate speculation possibilities, the deputy speaker said.
Russian Prime Minister Mikhail Mishustin recently stated that the surcharges of intermediaries are still a significant factor in price increases. “It is clear that the goods need to be well-packaged and delivered to the buyer, but the costs for these services should not exceed what is reasonable” Mishustin said.
However, there are currently no objective grounds for the rise in potato prices. The Agriculture Ministry, for example, reported to Izvestia that the potato harvest in Russia in 2024 was in line with the average of the previous years. Moreover, the Agriculture Ministry has introduced a tariff benefit for the duty-free import of imported potatoes to Russia to support the domestic market.
Some trade chains are already voluntarily keeping prices for certain socially important food products stable, including potato prices, the Federal Antimonopoly Service told the newspaper. Regional governments are also concluding agreements with suppliers to set prices for such products. Initiatives of this kind are already being successfully implemented in 30 Russian regions and are now to be introduced nationwide.