Price zones: Why were they needed in the USSR?

Price zones: Why were they needed in the USSR? A store in Anadyr, Chukotka.
V.Chistyakov / Sputnik
In those times, prices for goods were set by the state and they did not change for years. But, this did not mean that the cost of certain goods was the same throughout the country.

The economy of the Soviet Union was planned, not market-based. Prices for everything were fixed, calculated years in advance. The cost of goods was written right on the packaging. However, a number of products had not one, but three prices! Each for a certain region. Why is that?

‘Price belts’

Price zones: Why were they needed in the USSR? This is how the "price belts" looked like.
Pikabu.ru

The Soviet Union was the largest country in the world and, in order to distribute the costs of transporting goods, in 1935, they introduced the concept of ‘tsenovye poyasa’ (‘price belts’ aka price zones). First, for confectionery and then for other goods. The closer the place of sale was to the place of production, the lower the price. 

Price zones: Why were they needed in the USSR? Store of a state farm in the Kazakh SSR.
Valentin Khukhlaev/russiainphoto.ru

The first zone included union republics (Uzbek SSR, Kyrgyz SSR, Lithuanian SSR, Estonian SSR, Latvian SSR and others), as well as closed cities. It was there that the prices were minimum. 

The second zone was the most part of the country, including Moscow, Moscow Region and Leningrad (now St. Petersburg).

Price zones: Why were they needed in the USSR? Moscow store #31.
Semyon Mishin-Morgenstern/MAMM/MDF/russiainphoto.ru

The third zone included all the regions of the Far North, where it was difficult and expensive to deliver goods. At the same time, residents of these areas had so-called “northern bonuses” to their salaries. 

Price zones: Why were they needed in the USSR? Store in the town of Naryan-Mar above the Arctic Circle.
Georgy Lipskerov/MAMM/MDF/russiainphoto.ru

Prices, as a rule, differed by a few kopecks, but, on a national scale, it allowed the state to save substantial sums. 

For example, a pack of sugar in the first zone cost 47 kopecks, in the second – 52 kopecks, in the third – 57 kopecks.  

Price zones: Why were they needed in the USSR? A pack of sugar.
meshok.net

Another popular product was condensed milk. Residents of zones I and II could buy it for 55 kopecks and, in zone III, for 62 kopecks.

Price zones: Why were they needed in the USSR?
Pikabu.ru

Sunflower oil, meanwhile, cost 1 ruble 5 kopecks, 1 ruble 10 kopecks and 1 ruble 15 kopecks, respectively. 

Price zones: Why were they needed in the USSR?
meshok.net

And canned compote – 59, 65 and 73 kopecks.

Price zones: Why were they needed in the USSR?
meshok.net

What were the ‘belt’ prices for?

Zone (‘belt’) prices were not for all things and products. As a rule, they were set for sugar, salt, canned goods and large-sized goods that required large transportation costs. For example, furniture. 

But, household appliances like a meat grinder, vacuum cleaner or hair dryer cost the same everywhere.

Price zones: Why were they needed in the USSR? Soviet hairdryer.
meshok.net

Cosmetics, clothes and shoes, as well as tea and coffee also had an all-union price. 

Price zones: Why were they needed in the USSR? Soviet powder costed 1 ruble.
meshok.net

But, dairy products, eggs and bread had either one or only two prices, since they were not supplied to other zones. This didn't mean that other regions didn't have ice cream or cheese, just that other producers' products were shipped there. 

Price zones: Why were they needed in the USSR? A pack of eggs from the Soviet times.

Supply categories

In addition to zone prices, the USSR had four so-called “supply categories”: special, first, second and third. The special and first categories included Moscow, Leningrad, capitals of the Union republics and “closed” (secret) cities. The second included the main territory of the country, while the third included the regions of the Far North (Yakutia, Chukotka, Murmansk region and others). 

Price zones: Why were they needed in the USSR? Rural store in the Tajik SSR.
Sigismund Kropivnitsky/MAMM/MDF/russiainphoto.ru

It turned out that although Moscow and Leningrad were more expensive than Riga and Tashkent, there were more goods there, including those in short supply. So, residents of other cities often went there to shop. 

Price zones: Why were they needed in the USSR? Store in Moscow.
Evgeny Khaldey/ MAMM/MDF/russiainphoto.ru

After the collapse of the Soviet Union, the cost of goods became linked to free market economy principles of supply and demand, so, even today, prices can differ, even in neighboring stores.

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