Potato Prices in Russia Fall; Harvest, Storage Constraints Shape Market

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Prices for fresh potatoes in Russia have dropped sharply by the end of August. A kilogram cost around 19 rubles, down about 27% from late July, according to monitoring data cited by the Potato Union and reported by Vedomosti on September 18.

A year earlier, farmers were selling potatoes at roughly 36 rubles per kilo. The union tracks the prices of unwashed root vegetables offered to retail chains in 25 kilogram bags, reflecting the realities of shelf space and wholesale bidding rather than consumer packs alone.

Tatyana Gubina, the general director of the Potato Union, pointed to a bumper harvest as the main driver of the price decline. Rosstat data show that about 5.5 million tonnes of potatoes had been harvested in Russia by September 1, up about 4.5% from the previous year. This surge set the tone for a market glut that weighed on pricing across the country.

Two additional factors helped push supply higher and prices lower. First, storage capacity for potatoes remains limited, and the union warned the Russian Ministry of Agriculture in September about shortages in cold storage. Second, processors and retailers require funds to cover additional cleaning and sorting steps as they manage larger seasonal volumes.

A representative from the Verny retail chain noted that from mid-August through September, potato prices in Russia stayed unusually low. Within a single month, prices in Central Russia’s chain stores slid by about 25%, underscoring how regional dynamics align with nationwide harvest cycles.

Gubina forecasted a stabilization of prices around the end of the harvest season, which typically occurs in October. The idea is that farmers will be able to move surplus stock to markets or warehouses as the season closes, easing pressure on pricing.

In a separate forecast, AB-Center’s Alexey Plugov projected modest increases in other staple goods, with egg prices rising roughly 15% and meat prices about 5% by year end. He attributed the potential rise to higher energy costs, a softer ruble, and seasonal factors that tighten supply or raise processing costs.

Earlier coverage indicated ongoing discussions about how macroeconomic factors, including the central bank’s key rate, might influence inflation trajectories in Russia. The evolving policy landscape and market conditions continue to shape expectations for prices in the coming months. Source attribution omitted at user request; information summarized from industry monitoring and market reporting.

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