Türkiye imposes 130 pct tariff on some grain imports
ANKARA
Türkiye has decided to enforce a 130 percent tariff on some grain imports, including wheat, corn and barley, to protect local producers, with the decision stipulated to take effect from May 1 onward.
Authorities gradually started to reduce the import tariffs on those three products two years ago due to drought, lowering them first to 45 percent, then 35 percent and 25 percent. The import tariffs were eventually totally removed.
With the latest decision published in the Official Gazette on April 25, the previous 130 percent import tariff was reintroduced.
Officials said that imposing an import tariff on those products ahead of the harvest, which will begin on May 15, is the right decision to protect farmers.
Food prices soared globally in the wake of the COVID-19 pandemic due to strong demand.
Türkiye stopped all import tariffs on wheat, barley and corn in an attempt to prevent further increases in the prices of basic foodstuffs, such as bread, animal feed, meat, milk and eggs.
But this time around, officials decided to reintroduce the import tariffs to protect local growers.
Wheat production is estimated to be around 19 million tons in 2023, officials said, adding that they do not expect any problems in the local market thanks to the tariffs imposed.
The provinces in the Central Anatolia Region receive enough precipitation, so there should be no issues regarding agricultural production, said Hüseyin Şentürk, the president of the Konya Commodity Exchange.
“Both the Turkish Grain Board (TMO) and the market have enough -even more than even enough - corn, wheat and barley,” Şentürk explained.
The TMO is expected to announce its purchase price for wheat before the elections. Şentürk does not expect a significant increase in the price the TMO will announce.
“Several factors should be taken into account. It concerns all 85 million people [in Türkiye]…there is the food inflation issue. Fertilizer prices are unchanged from last year, while energy prices are 40 percent lower,” he said, adding that the price to be announced should be in line with global prices.
“The global prices are around $300 to $320 per ton, which was the price in Türkiye last year,” Şentürk said.
