Buckwheat prices are on the rise in Russia

“Invisible hand of the market” in action

According to the TASS news agency, wholesale buckwheat prices in Russia expected to rise in a near future fore more than 10%.

The main reason behind this lies in bad harvest of current year caused by infavorable weather conditions, as well as significant reduction of buckwheat-cultivated land after rich harvests of 2017, which forced producers to sell their goods below costs.

“2 years ago buckwheat wholesale prices were “dropped” to 5 rubles per kg, but production costs last year was from 6 to 6,5 rubles, so producers had no other choice but to reduce cultivated areas at least in half in order to make this profitable again” – told Sergey Bensler, director of “Coloss” LLC, one of the biggest Altai (located in Siberia) buckwheat producing companies.

While other some experts claim that this tendency must not affect consumer prices, other are not so optimistic.

“Most retailers will exploit this situation as a pretext to raise prices. In our country buckwheat price is somewhat “overhyped” issue, and consumers are quick to respond on fluctuating prices, which only encourages capitalists to provoke this interest” – suggests Alexander Gavrilenko, founder of National Agrarian Agency.

Since October 2019 Russian statistics Agency or Rosstat pointed on rise of consumer prices of buckwheat on 7.3%. According to their projections, prices will continue to rise at least untill the beginning of coming year, when decrease of price is expexted.

Such things are considered ordinary in Russia. Capitalist always put their interests before society’s. Both producers and retailers are working towards increasing their profits, which leads for a higher prices for consumers, majority of population. Such activities forces people to stiff upper lip, but capitalist couldn’t care less about it.