Kayseri Commodity Exchange Chairman of the Board Recep Bağlamış stated that the price of wheat in Turkey has increased from 2,250 Turkish Lira to more than 4,500 lira in the last year due to the increasing demand, the restriction of exports by the producer countries, drought and increasing exchange rates.
President Baglamış stated that the wheat production in Turkey, which was 20,5 million tons in 2021, is expected to decrease to 19 million tons in 2022, the need is 20 million tons, and therefore the "up" pressure on the price is expected to continue.
IN JUST 7 MONTHS, TMO EXCEEDED TWICE THE PRICE
Considering the prices in Turkey, it is stated that Turkish Grain Board (TMO) announced the purchase price of bread wheat for 2021 as 2,250 liras per ton on May 17, 2021.
Recep Baglamis used following words:
"This price was equivalent to $269 that day. The dollar was 8,36 lira. From that day to December 2021, a ton of wheat used by Turkey increased by approximately 100 dollars in foreign currency terms. When calculated with the exchange rate at the beginning of December, a ton of wheat exceeded 4,500 liras. Thus, the price of wheat has reached a level that is more than twice the purchase price of TMO in just 7 months. For this reason, all bakery products, especially bread and pasta, have been raised one after the other in Turkey."
FERTILIZER PRICES INCREASED 4 TIMES IN ONE YEAR
"In the tender for 385 thousand tons of bread wheat imported by Turkish Grain Board at the end of November, the ton price reached the limit of 395 dollars. Exporting countries are also taking their own measures by restricting them. There is an increase in 'stocking' activities due to the fear that prices will 'increase further'. According to the data of the General Directorate of Meteorology; For many years, October-November precipitation in Turkey was 107,7 millimeters. In this two-month period of 2021, 76,2 millimeters of precipitation fell. The four-fold increase in fertilizer prices in the last year has resulted in less fertilizer being thrown into the fields. All these factors show that the wheat yield in Turkey will decrease a little more in 2022," he added.
According to TURKSTAT's data; Turkey's wheat cultivation area constitutes 3,2 percent of the world wheat cultivation area as of 2020/21 production season. This area also constitutes 44 percent of the total cultivated grain area in Turkey.