Why potato prices in Russia have increased by 90.5% in just one year

Experts have attributed the sharp escalation to a combination of economic, environmental and geopolitical factors, creating significant challenges for both farmers and consumers.

Key factors behind price increases

Commodity inflationLeonid Kholod, an agricultural expert and former deputy minister, noted that general inflation hit staple foods hard, particularly the vegetable group known as borscht, which includes potatoes, carrots and cabbage. Rising costs throughout the supply chain, from seeds to retail, have made potatoes significantly more expensive.Climate and weather impactsUnfavorable weather conditions have played a key role in reducing production volumes. Public sector potato production declined by 1.2 million tonnes in 2024 due to extreme temperatures and erratic rainfall patterns. Such volatility has increased the vulnerability of the potato supply chain, underscoring the need for investments in climate-resilient agricultural practices.Sanctions and import challengesSanctions imposed on Russia have disrupted the supply of imported agricultural products, including seed potatoes and agricultural equipment. These disruptions have not only reduced the availability of high-quality inputs, but have also increased production costs due to logistical complications and higher transportation costs.Rising energy and fuel costsThe cost of energy and fuel, which are essential for running farm machinery and transporting goods, has increased. Farmers are faced with higher maintenance and equipment costs, further putting pressure on potato prices.

Implications for the agricultural sector

Rising potato prices reflect broader challenges in the agricultural sector. Small and medium-sized farms are particularly vulnerable to rising input costs, which can limit their ability to invest in productivity-enhancing technologies. Meanwhile, consumers bear the brunt of rising food prices, which strain household budgets and reduce overall food security.

Mitigation opportunities

Despite these challenges, there are potential avenues to stabilize the market:

• Adoption of modern technologies: Precision agriculture, drought-tolerant crops and improved storage techniques can help mitigate production losses due to adverse weather.
• Expanding domestic seed production: Reducing reliance on imported potato seeds can strengthen the resilience of local farmers.
• Government support: Subsidies for fuel, fertilizers and equipment could alleviate some of the financial burdens on farmers and help stabilize production costs.

The 90.5% increase in potato prices is a stark reminder of the interconnected challenges facing Russian agriculture. Addressing inflation, adapting to climate impacts and reducing reliance on imports will be essential to stabilising the sector. By leveraging modern technologies and providing targeted support, Russia can create a more resilient agricultural system, capable of meeting future challenges.