Russia considers zero rate potato imports to deal with shortage

Russia will have to import over 4 million tonnes of potato according to Agriculture Minister, Elena Skrynnik, following a pessimistic forecast of the drought impact on potato crops.

Skrynnik said the drought would cause major potato losses and that imports would be the only way to meet demand.

“The 2010 potato harvest has been forecast shrink by 30-40% from the previous year’s harvest of 31.1 million tones to 22 million tonnes, creating a shortage of 7 million tonnes assuming the general domestic demand of 29 million tonnes”

According to Alexander Pirozhenko, head of MED’s department of competition development, Russia plans to cut the import duty on potatoes. The import duty is currently 5% for seed potato and 15% for food potato however, the poor harvest could lead to the end of import duties Pirozhenko said.

"The question of reducing the import duty on potatoes, right down to zero, is being discussed,"