Prices for potatoes have fallen sharply in Georgia. Many Georgian growers, in anticipation of rising prices for basic products due to the Russian invasion of Ukraine and, consequently, the risks of food security in the region, have planted large amounts of potatoes, despite soaring production costs. Food security may indeed be an issue in some parts of the world, but so far Georgian growers report that there seems to be no export demand. Consequently, prices have fallen.
New potato prices have so far remained relatively high compared to previous years. In previous weeks, the overall volume of supply was quite small. This is due to intensive exports to Russia: stocks of potatoes from the previous crop were very low, and the new crop was still limited. All this, of course, leads to higher prices.
Currently, the average wholesale price of potatoes in Georgia is only a third of what it was a month ago. According to a July 24 poll, the average potato price is 1GEL/kg ($0.34/kg), very close to the 2019 level in the same week. In some cases, their prices are lower than last year.