The end of the year at Turkey is witnessing zero customs duty on Cereals & Grains to avoid massive inflation in staple food prices, one of several implementations by the government for the year.
Earlier import duties of 45%, 35% & 25% were imposed on Wheat, Barley & Corn, respectively.
This step is taken in expectation to bring an even supply of imports to the country.
The grain imports were already on a ten year high in 2019-2020.
The Lira’s depreciation against the dollar and contracting Per Capita income has resulted in a weak Turkish economy.
The consumer has been more reliant on cheaper sources of Protein like wheat over meat.
According to IGC, the imports of grains have increased by 85% from 2018-19 to 2019-20 at 12.6 million tons.
On the other hand, the producers have been struggling with increased production prices for compound fertilizers doubled from 2018 to 2020.
To maintain price levels at the time of currency depreciation, the Turkish grain Board implemented price intervention in May that had common wheat prices to increase from TRY 1,350 to 1,650 per MT & Barley from TRY 1,100 to TRY 1,275 per MT.
The grain prices in Turkey are spiked even higher due to China that has been on an import spree for grains and cereals.
The imports of cereals are expected to be 11.5 million MT, a decrease of 15% from the previous year in MY 1019-20.
According to USDA, the imports for the upcoming season will still be 25% higher than average.
The opening stock for 2020-21 will be the highest in the last decade, but the imports of wheat & maize are expected to be less than the previous season.
For the coming year, the wheat imports are approximately 500,000 MT and will decrease due to better domestic production in the current harvest season.
Barley is set to increase imports by more than 50% from last season from 0.2 million MT to 0.7 million MT, while the Maize imports are expected to be slightly down from 2019-2020.