Lowered Rouble Rose Prices for Potato and Carrot

According to the Russian Federal Service of State Statistics, inflation in June made 0,9%, since the beginning of the year — 3,2%. For comparison: in June, 2011 these indicators made 0,2% and 5% accordingly. Thus prices in Moscow and St. Petersburg grow with advancing speed: June inflation in the capital made 1,2% (since the beginning of the year — 4,3%), in the city on Neva — 1,3% (since the beginning of the year — 3,7%).

Fruit-and-vegetable production rose in price most essentially for the first summer month (13,4%) that is connected with intake of more expensive products of a new year. Eggs fell noticeably in price — by 6,3%. Appreciable rise in price for tobacco products was noticed as well as in last month: in June domestic cigarettes rose in price by 1,1-2,9% (in May — by 1,4-2,5%).

It is obvious that June indicators — only warm-up before start: in July revelry of inflation will reach apogee thanks to universal increase of tariffs — for all types of housing-and-municipal services, transport, petroleum. Inflation at a rate of 0,8% was marked in the period from June, 26th to July, 2nd (for the first two days of July 0,5% from them), since the beginning of the current year — 3,8%. For similar period of 2011 rise in price since the beginning of July made 0,1%, since the beginning of the year — 5,1%.

It’s hardly possible to consider situation when rise in price follows intake of products of new year normal. Normally fresh products are always cheaper - after all their price don’t include costs of their storage and transportation from far away, they are what is called from the neighbouring bed. Nevertheless, the Turkish sweet cherry gathered last month costs less than the domestic one which only several days ago grew on trees.

It is especially well seen on the sample of young potato - Egyptian or Arabian is two times cheaper, than Azerbaijani and the Azerbaijani tomatoes in their in turn are cheaper, than the ones from Krasnodar or Rostov.

So, costs for production of domestic agricultural products are essentially higher than abroad. While there the state covers part of these expenses, in our country it’s done at the expense of the consumer. Naturally, such price disproportion reduces demand for domestic products that by all means leads to new rise in price - potato grown up in the Central Russia gradually passes to the category of delicacies: even in winter "old" potato of domestic origin was more expensive in hypermarkets, than young from Egypt.

By and large, there is situation when we "grow" oil and gas and buy potato abroad.

The problem is that this way of existence is possible for the country with population in 10-20 million people, while 140 million should produced something else, otherwise even selling oil and gas more than someone on a planet, the main part of the population of the country will live half-starving, on the verge of poverty.

Actually in the Soviet period they could as well buy main produces abroad subsidizing foreign producer to the detriment of own. But they preferred to invest money and, what is more important, manpower into development of own sources of food. I don't speak about abundance of oceanic fish at extremely low prices - now it’s been sold in foreign ports or directly in the sea. Provision of the capital region with vegetables, for example, was generally carried out from the Yakhromskaya Poyma - unique piece of fertile earth in Dmitrovsky region.

Specialized organization under the name LMS (meadow-improving station) was created in 1949 in a village Rogachevo. There was one task for it to achieve: drainage of inundated lands for the needs of agriculture. 75% of the reclaimed lands were returned to life with the use of so-called closed drainage. 748 roubles were invested into each hectare. By estimates of experts, the mid-annual profit of state farms from realization of vegetables received from these hectares made 602 rubles. Thus costs of land improvement paid off less than in two years. In 1965 state farms "Dmitrovsky", "Rogachevsky" and "Yakhromsky" sent to Moscow over 60 thousand tons of vegetables, it’s six and a half times more, than it was delivered before the beginning of wide development of this flood plain.

Today holding "Dmitrovsky Vegetables" process 2000 hectares against 10 000 in the Soviet period. Naturally production of vegetables fell in times. From interview of the head of the agricultural holding: "We aren't supported by the state – it’s ok. I will tell you more: we don’t need support! It is necessary to define rules of the game and we will do everything ourselves. We will plant, grow up, gather and pay taxes! But think for yourself, if producer receives 20-25% from the retail price and the rest is being shared between who knows whom – if there’s a theme for discussion?!"

Really, there’s nothing to talk about, if agricultural producer doesn't of the state support, he asks not to plunder him at least!

Then we get surprised that young potato from Saudi Arabia, grown up in the desert, cost cheaper, than domestic one. We are also surprised - why inflation grows because of intake of vegetables of new year. The answer is very simple: the state in Saudi Arabia worries about developing of not - oil production, while in Russia the state destroys everything which still works.

However, low price of vegetables from Dmitrovsky farm (as well as from Serpukhov where similar flood plain of Oka also gave huge harvests) was achieved as well due to the "gratuitous" work of students and other scientists being in autumn by all means sent "on potato fields”. Though after all their work was not free: "gratuitous" labor all the same should be placed somewhere, fed, usual level of salaries also should be somehow kept.

It is clear that today no one could be sent to the field, though it will be very useful for "managers". We are howling and squealing that Tajik guest workers occupy workplaces of true and orthodox Russians. Thus only guest workers would agree to work on Serpukhovky and Dmitrovsky farms due to low base norms of compensation. Then it’s necessary to send there Tajiks and Uzbeks accustomed to agricultural works...

Actually there are a lot of such decisions, but they aren't necessary to anybody. The state is interested in high, not in low prices for food, for housing and communal services and other. After all each of 140 million Russians is perceived by them as "extra mouth to feed", as a burden. Only imagine – they guzzle potato, get warm near the battery and don’t bring any profit. Incredible...

Actually, difference of approaches explains low inflation in the USSR and high from scratch - in Putin's Russia.

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