PRICES FOR FOOD PRODUCTTS HAVE STABILIZED IN MOST REGIONS OF THE FAR EAST DISTRICT

The costs provoked by forced substitution of suppliers from China and changes in the food delivery logistics went down to the previous level in 9 out of 11 subjects in the Far East Federal District

Due to received information about a growth of prices for food products in the Far East Federal District, on 4 February 2020, the Antimonopoly Service initiated the work to handle the situation on the food products markets.

The first data of the monitoring showed a slight increase of prices for tomatoes and cucumbers as well as a seasonal increase of prices for bulb onion in the Magadan and the Sakhalin regions, the Republic of Buryatia and the Trans-Baikal Territory.

A price spike for vegetables and a slight increase of prices for socially important food products occurred in the Jewish Autonomous Area, the Primorye and Khabarovsk Territories and in the Amur region.

FAS has undertaken considerable awareness-building efforts with the largest wholesale suppliers of food products in the Far East, hot lines are opened in all regional Offices of the Antimonopoly Service, prices are monitored on a regular basis, and the work of the crisis centre is organized, involving Heads of regional authorities.

As a result of the undertaken measures, on 10 February 2020 the situation with food products prices began to stabilize: prices in the Primorye and Khabarovsk Territories, the Amur region and the Jewish Autonomous Area decreased to the previous level.

By 2 March 2020, the situation with socially important food products stabilized in the Sakhalin region, the Republic of Buryatia, the Trans-Baikal Territory, the Khabarovsk Territory, the Jewish Autonomous Area, the Republic of Sakha (Yakutia) and the Chukotka Autonomous District.

Currently, increased prices are observed only in the Magadan region and the Kamchatka Territory: carrots, garlic, pepper (15-40%) and potatoes (10%), which are related to changing suppliers in these areas.

Stats-Secretary, Deputy Head of FAS Andrey Tsarikovsky emphasized: “Overall, the food shortage, caused by the closure of the Russian-Chinese border and a subsequent growth of prices for Chinese goods, is over, and prices are stabilized in practically all subjects in the Far East. We are watching carefully the situation in the Magadan region and the Kamchatka Territory and expect that prices will return to the previous level following logistical changes. The Antimonopoly Service continues to control the prices for food products across the entire Far East Federal District and if any signs of a desire to “capitalize” on the difficult circumstances with food products are exposed, FAS shall apply all possible antimonopoly remedies”.