The Turkish grain industry and agricultural sector anticipated a government move to increase import tariffs on major grains, according to Onat Angi, Chairman of SOLVENTUM AS. However, the scale of the tariff hike took them by surprise, considering the previous rates hovered around 20%-25%.
In a significant development, the Turkish government has indeed implemented restrictive import tariffs on main grain crops, setting the rates at 130% for wheat, barley, corn, oats, and sorghum.
Onat Angi remarked, “Türkiye had previously applied these rates to deter imports, especially during periods of high inflation. However, recent economic conditions compelled the government to reduce taxes to unprecedented levels, even down to zero.”
This decision has not only impacted the grain market but also sparked expectations in the oilseeds and vegetable oils sectors. There is speculation that the maximum tax rate may revert to 36% for sunflower oil and 27% for oilseeds. Before the zero-tax policy, these rates stood at 10% (with a reference price set at 2500 USD/t) and 5% (without a reference price), respectively.
The adjustment in import tariffs reflects Türkiye’s efforts to manage its domestic grain market dynamics amidst evolving economic circumstances. Industry players are closely monitoring the implications of these changes and adjusting their strategies accordingly.