Why are bread, butter, and buckwheat becoming more expensive in Russia?

Published Dec 24, 2024

Tridge summary

The FAS of Russia has brought attention to the rising costs of buckwheat, despite concerns about the stability of food prices, with no evidence of price increases in the market. The agency's concerns seem to be focused on future price trends in 2024, which are not mirrored by current market observations or industry projections. Meanwhile, the sunflower seed market faces significant challenges, including a decrease in harvest due to the adoption of domestic seeds, which result in lower yields. This, coupled with export restrictions and the monopolization of domestic processing, has led to a significant increase in sunflower seed prices, affecting both domestic and international markets. The high prices, while posing challenges for farmers, are also attracting investment in the oil industry associated with sunflower seeds.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Last week, the FAS demanded that grain processors explain why buckwheat has become more expensive in the country. It was with it that the process of manual control of food prices at the highest level was launched in 2020, and here it is again. Fontanka asked the head of grain in Russia what is happening and why. This time, the FAS of Russia seems to have played ahead. The letter published by the agency to the Russian Union of Flour and Cereal Enterprises speaks of an increase in the cost of buckwheat in November-December 2024. However, neither Rosstat nor the leadership of industry associations are aware of this yet. There are indeed problems with the growth of manufacturers' selling prices, but in another place - with sunflower seeds, on which the prices of vegetable oil depend. It is really becoming more expensive in stores, unlike buckwheat, although so far in very limited quantities. Fontanka spoke with the head of the Russian Grain Union, Arkady Zlochevsky, who explained what ...

Source: Zol