Background

The rf  Is Returning  to Planned Pricing in the Agricultural Sector

7/25/2025
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A record poor  harvest in 2025 became the impetus for increased administrative intervention in  russia’s agricultural sector. Due to a prolonged drought and spring frosts, gross grain production is expected to be only 130.3 million tons, while  wheat harvest is expected to be 84 million tons. Export volumes will also decrease significantly. The yield fell to 3.4 t/ha, by 15  % lower than last year’s figure, some regions report a critical level of losses.

Vegetable prices have already increased by tens of percent: carrots – by 58 %, beets – by 39 %, potatoes – by 30 %. At the same time, dependence on imports is growing due to a lack of seeds and a deterioration in the quality of the crop. In response, the government of the rf has intensified the policy of price control: a model of long-term contracts is being developed with a fixed cost of supplies of basic products (vegetables, eggs, etc.). The introduction of a “fork” of minimum and maximum selling prices for manufacturers is also being discussed.

Such a model of manual control in the future will destroy market mechanisms, cause excessive bureaucratization of the industry and increase the administrative dependence of manufacturers. Price fixing will only freeze the structural problems of the agricultural sector – the high cost of logistics, energy and raw materials.