Food prices will rise in Russia

Manufacturers and suppliers of food products in the Russian Federation insist on increasing purchase prices by 15 – 20%, RBC reports.

Food prices have gone up
Food prices have gone up

The executive director of Rusprodsoyuz, Dmitry Vostrikov, told reporters that the requirement to revise the pricing policy was caused by the coronavirus pandemic and the depreciation of the ruble, which significantly increased the costs of production and distribution.

Most strongly – by 20% – imported tea, coffee and cocoa will rise in price. The purchase prices for foreign alcohol will increase by 13 – 18%. Imported vegetables and fruits will also go up in price, and Russia seriously depends on them from March to June, when its own supplies are already exhausted.

Against this background, by the way, there have been attempts of Russian farmers to introduce a temporary ban on the import of cheaper foreign vegetables, which threatens to undermine the competitiveness of local producers in the domestic market.

But the increase in prices will not only affect imports. Due to currency fluctuations in Russia, the cost of packaging has already increased, as well as transportation costs. Also, manufacturers that are working in the epidemic have to spend money on disinfection and ensuring safe working conditions for the personnel. In this regard, Russian producers are raising the selling price for pasta (5 – 15%) and bread (5 – 7%), as well as fish and fish products.

In order to somehow smooth out the effect of such a significant leap, suppliers suggested that retail chains increase the final price gradually, in two stages. At the same time, they secured themselves from accusations of speculative pricing: as Vostrikov stated, the Federal Antimonopoly Service has already checked all the proposals made.

Thus, we see how, in conditions of the flaring crisis, food producers and suppliers are trying to save the profitability of their enterprises, which will ultimately have to be saved by the final consumer, that is, ordinary citizens. Many of them, by the way, were already forced to seriously tighten their belts. It is unlikely that people who have lost their jobs will be able to treat such trends with understanding.

In our opinion, this is the global imbalance, the greatest injustice of the capitalist system. When even supplying people with the most necessary products like food is done not for the people, not for the development of society, but for the sake of profit. With this approach, it is easier for the capitalist to destroy unsold products than to give them to the starving for free.

Everyone can judge about the benefits of such a human system on their own.

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