While the exclusion of factories from the privatization scope was considered as a turning point in terms of the agricultural production of the country, the fact that the factories that will be excluded from the privatization will be transferred to the Wealth Fund raised questions.
Sugar factories, which have been under privatization since 2000, are finally removed from the scope of privatization. While the exclusion of Turkey's strategic organizations from the scope of privatization after 21 years was welcomed with great joy in the sector, the fact that the factories will be transferred to the Wealth Fund also raised questions. The President of Şeker-İş Union, İsa Gök, stated that they find it positive to take a positive step in an issue they have been struggling with for years as a union, but it is early to make an assessment on this issue as it is not known what kind of management will be established with the transfer to the Wealth Fund.
15 SUGAR FACTORIES WILL BE TRANSFERRED TO THE ASSET FUND
While 10 sugar factories under TÜRKŞEKER were privatized in 2018, the sales process of 3 sugar factories was canceled. Accordingly, TÜRKŞEKER still has 15 sugar factories, 2 alcohol factories, 2 machine factories, 1 electromechanical devices factory, 1 seed processing factory and 1 research institute.
AWAITING THE PUBLICATION OF THE PRESIDENTIAL DECISION
It is envisaged that all of the shares in TÜRKŞEKER's capital will be removed from the privatization scope and program and all of these shares will be transferred to the Wealth Fund. While the work on the subject is completed, the Presidential Decree on the exclusion from the privatization scope and program and the transfer of the Wealth Fund is expected to be published soon.
As it is known, sugar factories, which are among the top strategic establishments of Turkey, were under privatization, so no investments had been made for years. While factories were sentenced to work with old technology, this weakened TURKŞEKER's competitiveness.
While it was found important that the factories, which have significant contributions to Turkey's sugar production and economy, were excluded from the privatization scope, their transfer to the Wealth Fund raised questions.
FACTORIES EXCLUDED, REAL ESTATES WILL BE SOLD BY 2025
On the other hand, while factories are excluded from the scope of privatization, the real estates subject to sale will not be excluded from the privatization scope and the privatization process is expected to be completed by December 31, 2025. The agricultural food company of TÜRKŞEKER, which operates in agriculture and was established last year, will be removed from the scope of privatization and transferred to the Wealth Fund.
EARLY TO MAKE AN ASSESSMENT RELATED TO THE TRANSFER OF THE ASSET FUND
President of Şeker-İş Union, İsa Gök stated that they welcomed the exclusion of sugar factories, which are the leading strategic organizations, from the privatization scope. Expressing that they, as a union, have been fighting for this for years, Gök said, “Since sugar factories are within the scope of privatization, no investment was made. In the current situation, it was not possible for factories to survive in this way. "We consider the exclusion from the privatization scope as a very late but appropriate decision in this sense," he said.
Stating that it is early now to make an assessment regarding the transfer of the factories to the Wealth Fund, Gök said, "We need to see what kind of management will be formed regarding the transfer of the factories to the Wealth Fund."
Stating that the quota of starch-based sugars in the sugar sector was reduced to 2.5 percent, but the inspection in the sector was insufficient due to the closure of the Sugar Authority, Gök said, “According to TURKSTAT data, the total sales of the starch based sugar sector (including exports) in 2019 are at the level of 526 thousand tons. When the domestic sales quota of 67 thousand 500 tons is reduced in the sector that works without stock, the export should be 458 thousand tons. However, according to TÜİK data, starch based sugar exports in 2019 amounted to 260 thousand 624 tons. So where were the remaining 198,000 tons of starch based sugar used?” he asked. Gök said that with the exclusion of sugar factories from the scope of privatization, a solution to this lack of supervision in the sector should be found, otherwise, it would be of no importance to reduce the starch based sugar quotas to 2.5 percent.