The Food Situation in the ex-Soviet Republics

Agriculture always played a role in determining economic and political change in the former Soviet Union and this was even more the case in the early years after its dissolution. One of the main concerns was to prevent collapse in trade among the former Soviet Republics as it was feared this would lead to rapid deterioration of the already critical food supply situation in many areas and in particular in large Russian cities. According to official estimates over half the population was below the poverty line in late 1991, and food accounted for some 50% of household expenditure on average. In January 1992 prices were liberalised in Russia and various other Republics, and a comparison of food prices and incomes illustrated that there was widespread hardship. Agricultural prices fell in former Soviet Republics and there were doubts about how far higher prices would be able to induce the necessary supply response. Trade with third countries collapsed both on the import and export side. This was partly due to payment difficulties and recession in the smaller Central-Eastern countries, but also due to falling output and deliveries in traditional Soviet export sectors such as energy, gold and raw materials. In this context Western food aid assumed a crucial importance, though the task of directing assistance to the right hands became ever more complex. The article aims at providing a brief description of the situation after collapse of the Soviet Union, illustrating that many of the factors leading to the critical food situation had been in place for some time.