Potato prices in Russia surged this spring, reaching 90–200 rubles per kilogram, prompting concern even from President Putin. Despite Russia producing more potatoes than it consumes annually, a combination of factors has led to this increase.

The primary drivers include a reduced harvest due to unfavorable weather conditions, specifically a hot and dry summer in many regions. This decrease in yield, coupled with past years of overproduction that depressed prices, has discouraged farmers from planting large quantities of potatoes.

Another significant factor is the reliance on imported seed material. Sanctions have increased the costs and logistical challenges associated with importing seeds, making them more expensive. While the Ministry of Agriculture is promoting the use of domestic planting material, high-quality alternatives are not yet readily available in sufficient quantities, resulting in lower yields and quality.

Paradoxically, Russia produces an estimated 16–17 million tons of potatoes annually, while domestic consumption is around 12.5 million tons. The issue lies in the fact that a large portion of potatoes grown by small and medium-sized farms, as well as individual gardeners, lacks access to established market channels, making it difficult to sell surpluses. This lack of infrastructure prevents these potatoes from reaching consumers, exacerbating the perceived shortage and driving up prices.

Increased imports from countries like Belarus, Spain, China, Egypt, and even Central Asia, further contributed to the price hike. Despite these imports, domestic potato supplies dwindled earlier than usual, leading to a greater reliance on more expensive young potatoes and further fueling price increases.

Experts suggest that improving the sales infrastructure for small and medium-sized farms is crucial. Developing rural cooperatives and market structures would enable these producers to sell their potatoes more efficiently, creating a more competitive market and mitigating price fluctuations. Some suggest volume restrictions and a system of subsidies and support for agricultural producers.

Another solution is procurement intervention, meaning the state purchases agricultural products when prices for them fall below market prices. Commodity intervention, on the other hand, is a mass sale of goods in order to reduce the shortage and prevent a strong increase in prices.