President Erdoğan stated that they increased the beet purchase price in 2022/2023 production year from 42 kurus to 80 kurus.
"Together with the premium and pulp support, a beet price of 875 lira per ton is revealed to our producers for the upcoming period," Erdogan said.
Erdoğan stated that they will reevaluate this figure during the harvest period. It is especially important that Erdoğan stated that this figure will be evaluated during the harvest period. Because the announced beet purchase price will be paid to the farmer in February and March next year. Therefore, it is a great mystery how inflation and input costs will increase in a year.
This uncertainty seriously frightens the farmer.
While Erdogan makes a vague commitment that "the purchase price will be re-evaluated during the harvest period", the farmer wants policies that are predictable to the farmer, just like in the currency-guaranteed deposit account.
In other words, it expects a commitment that the increases to be experienced until the harvest period will be fully reflected in the purchase price, based on current inflation and input costs.
However, such a commitment can lead the farmer to beet cultivation without hesitation, otherwise the reproaches from the field show that the farmer will not have a strong appetite for beet production in this period.
THE ACCOUNTS MADE REVEAL THE PRICE THAT SHOULD BE
On the other hand, 800 TL/ton beet purchase price for 16 fleece, excluding the announced premium and pulp price, was far from meeting the expectations of the farmer.
According to the cost calculations, it is stated with the figures that the advance price of beet in 2022 should be 1200 TL/ton, while it is pointed out that the price below 1000 TL/ton means that the farmer produces at a loss.
According to the calculations based on 2003, it is stated that the increase in PPI between 2003 and 2022 was 1118 percent, and the purchase price of beet increased by 377 percent in this period. According to this table, the advance price of beet in 2022 (1118.12 / 377.27) x 420 = 1244.75 TL. This figure should be updated in November according to the inflation to be experienced during the year.