October 25, 2024, 10:18

No grounds for potato prices to hit 50 UAH, says Deputy Minister

Despite a downturn in this year’s potato harvest, there’s no justification for prices to reach 50 UAH, according to First Deputy Minister of Agrarian Policy and Food of Ukraine, Taras Vysotskyi. 

Speaking at a briefing hosted by Media Center Ukraine, Vysotskyi addressed concerns about a potential spike in potato costs.

“Potatoes were indeed impacted heavily by drought, causing a noticeable drop in yield compared to last year, which has contributed to a price increase,” Vysotskyi noted. “Currently, however, wholesale prices stand at 25 UAH, and retail prices are around 30 UAH. They’ve held steady at this level for the past three to four weeks, and we expect this stability to continue,” he added.

Vysotskyi clarified that, given the current economic circumstances, there is no foundation for a price hike to 50 UAH.

“There is simply no basis for a price of 50 UAH per kilo. First, the current 25-30 UAH rate is fully adequate to cover production costs, even with this year’s reduced yields. Second, this price level supports imports. With an open economy and market, we export surpluses and import when needed—this is a normal practice. When prices reached 25 UAH, imports from Poland and the Baltic countries helped curb speculative price hikes. Although these imports make up a small portion of our total production, a few tens of thousands of tons are sufficient to effectively stabilize the market,” he emphasized.

However, Vysotskyi also noted that while prices won’t drop, a modest increase is possible as spring approaches.

“Unfortunately, consumers shouldn’t expect a price decrease, as lower yields will keep prices firm. Looking ahead, we could see a slight rise, about 10-15%—perhaps even up to 20%—closer to spring due to storage costs. But it certainly won’t reach 50 UAH; that’s simply out of the question,” Vysotskyi concluded.

Read more: https://mediacenter.org.ua/news