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Fruit & vegetables prices drop is off & running

Fruit & vegetables prices drop is off & running


As experts of RF Chamber of Commerce and Industry say, the peak of fruit & vegetables prices falls on the mid-May. Since the beginning of June all kinds of fruit & vegetables become cheaper.

The main reason is that the market is getting ready for a new crop. In order to clear storehouses for the new season, producers sell of the stocks. In addition, the electricity consumption in greenhouses decline, so the prime cost of output becomes lower. Besides, the market offer grows because of the greenhouse vegetables volume rise & the first fruit & vegetables of new crop from the family farms coming to the market. The South Russia weather conditions afford to get field vegetables crops as early as the end of June.

According to the Federal Service of State Statistics, the slight prices decline for tomatoes (-9,2%), cucumbers (-6,7%) & cabbages (-5%) was observed in the first May week in spite of the prices increase during the first five months of the year. While such products as potatoes, apples & carrots got up a little. The Russian Fruit-and-vegetables Union expects the potatoes prices drop nearly in the mid-June, when the local products from the Astrakhan & other Southern regions of Russia come to the retail. But potato prices will not change principally, because they were rather low due to the high competition. Carrot prices don’t decline due to the small offer & import domination.

Generally, fruit-and-vegetables prices increased by 7,8% during the first five months of the year according to Rosstat data. The peak of seasonal drop is expected in July, when the local harvest hit the market.

As the Fruit-and-vegetables Union estimated, the seasonal decline will be nearly in line with last year due to the favorable weather. The head of the Union Anatoly Kutsenko thinks, the main potato prices decline will start in July & run on till the early frosts. But the significant drop is not expected because some marketers left the market & offer decreased.

Kutsenko thinks, weather conditions during the vegetational & harvesting season can also affect the price, in spite of the successful potato & other vegetables planting. Other important reasons are the purchasing power, exchange-value of rouble & price policy of big retailers. Moreover the Vat rate rolled over to 20% in 2019.