As suppliers reported to retail chains, problems with the rice harvest in the Krasnodar Territory last year could cause product prices to rise from 10% to 30%. In this respect writer Kommersant cites sources and market participants.
The source of the publication noted that rice groats producers have reported price increases to retail chains due to problems with the harvest. According to him, the unfavorable conditions in the Krasnodar Territory, where most of the rice is grown in the country, led to a decrease in the quality of raw materials. And massive rice weeding leads to an increase in grain cost.
Some market participants confirmed that they have received notifications of price increases from suppliers. At the same time, depending on suppliers, some retail chains received notices of price increases of 15-30%, while others – 8-19%. According to a source among producers, rising prices of rice groats could lead to reduced demand and a shift in attention to cheaper buckwheat.
Analysts now think that the price increase is self-depleted, as grain production in Russia reached a record 529 thousand tons in 2022. In addition, retail chains will hold off price increases for as long as possible to avoid a decline in merchandise sales. The Ministry of Agriculture also stated that the quality and volume of the crop fully met the domestic demand in 2022 and there was no reason for the price increase.
February 20 from Grodan survey data recognizedMore than a third of Russians – 36% – started buying greenhouse cucumbers and tomatoes less frequently in February 2023, and 12% stopped buying such vegetables altogether due to rising prices.