Russia might double quota for duty-free potato imports to 300,000 tonnes
MOSCOW. April 24 (Interfax) - The quota for duty-free potato imports into Russia might double to 300,000 tonnes from the current 150,000 tonnes, the Agriculture Ministry said.
"Taking into account that Kazakhstan imposed a ban on exporting potatoes from the country, a decision to increase the tariff quota for Russia to 300,000 tonnes is now being agreed in the forum of the EEC. This measure, in effect until July 31, 2025, will make it possible to fully cover domestic needs until the arrival of the new harvest and favorably affect the price situation," the ministry said in a press release.
The ministry also said there are plans to expand the potato crop area to 286,300 hectares this year in order to increase domestic production. Planting has already begun in most regions of Russia and this work is now going faster than last year, it said. Potatoes had been planted on 41,400 hectares as of April 23, compared to 35,900 hectares a year earlier.
"In general, given favorable weather conditions, a decent potato harvest is expected in 2025," the ministry said. The organized farming sector in Russia harvested 7.3 million tonnes of potatoes in 2024.
The ministry, citing data from the Federal Antimonopoly Service (FAS), also said there are now agreements in place in 34 regions to fix maximum allowable retail prices for potatoes.
"Furthermore, the law on agricultural aggregators that facilitate sales of farm produce to retailers went into effect on March 1. This will create comfortable conditions for small forms of farming to enter retail chains. Additional sales channels will emerge and logistics costs will decrease, which will have a favourable impact on product pricing," the ministry said.
Potatoes have seen some of the fastest price growth among foods in Russia this year, with prices soaring 45.2% in the period from the start of 2025 to April 21, Federal Statistics Service data showed. However, cabbage, onions and beets have caught up and overtaken potatoes in this regard in the past two weeks. Prices for these vegetables rose faster than potato prices in the week from August 15 to 21.
Market experts expect the potato harvest to increase this year, which should stabilize the situation and bring prices to a reasonable level.
The chairman of the Potato Union, Sergei Lupekhin said potato production is expected to grow because small and medium farmers want to increase their crop area given the high margins on potatoes this season.
"Given favourable weather conditions - a warm summer with a comfortable temperature and sufficient moisture for growing potatoes - the harvest could be good," Lupekhin said.
"Compared to the previous season, farmers are more motivated to grow potatoes, including because of the increased profitability of this crop," the executive director of the Narodny Fermer association, Stanislav Sankeyev said.
Lupekhin said many new players have emerged on the market this year and the development of the processing market is spurring the additional potential to increase potato production.
"A good harvest for the year will make it possible to cover domestic potato needs, which will have a favorable impact on the price situation. By our estimates, with a farm-gate potato price of 30-35 rubles per kilogram, it might cost no more than 50-60 rubles in retail chains. This will be a fair price for both producers and consumers," Lupekhin said, adding that direct long-term supply contracts between farmers and retail chains will also help keep the situation stable.