July 28, 2021

More Borscht for All


More Borscht for All

“We expect there to be and there already is a decrease in prices for products included in this ‘borscht set,’ and in our opinion, the trend will continue.”

– Elvira Nabiullina, the head of the Central Bank of the Russian Federation

Russia’s produce prices have seen a sharp increase this summer, but lovers of borscht may have reason to celebrate: “This is a seasonal story,” Nabiullina explained on July 23, and the prices of the country's core crops may continue to decrease as new harvests arrive to market.

This comes after a poor growing season in Russia last year, which included bad weather and a lower quality of crop storage. Imported potatoes, onions, and carrots are more present in Russian domestic trade currently, and the exchange rate between the ruble and the dollar has also driven prices up.

On June 30 during a live broadcast on Russia’s 24-hour business news channel RBC, a participant asked Putin why the cost of a Russian carrot was greater than an Ecuadorean banana. The banana cost 78 rubles per kilogram (approximately $1 USD); the carrot cost 110 rubles (approximately $1.50 USD). Putin explained it is a global trend, as "world food indices have risen to their highest level in the past ten years," and also noted that Russia is dependent on other countries to supply certain fruits and vegetables because the Federation does not produce enough to meet domestic demand.

Strangely, no one mentioned any beets!

 

 

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