Source: Zerno.ru (Russia)
Kommersant, referencing Reuters and the Federation of Turkish Flour Mills, reports that Turkey will lift restrictions on wheat imports starting March 19, 2025. This information was provided by the Turkish Grain Council.
The report indicates that flour producers who export will benefit from unrestricted imports. However, further specifics regarding the decision were not disclosed.
According to Andrei Sizov, the director of Sovecon, the duty-free import scheme for flour exporters is a typical practice in Turkey. He notes that this was the method employed prior to the substantial limitations placed on supplies last summer.
In June 2024, Turkey announced a ban on wheat imports from June 21 to October 15 in an effort to safeguard local farmers. The Turkish Agriculture Ministry, as quoted by World-Grain, stated that these measures were essential to “secure raw material supplies through domestic production and maintain market stability in favor of producers.” Nevertheless, Miller Magazine reported that while the ban wasn’t entirely rescinded in October, a system was established permitting flour mills to import 15% of the necessary raw materials for producing export flour, with the remaining 85% required to be obtained from the Turkish Grain Board’s reserves.
Amid rumors of a potential resumption of wheat imports, the price of wheat on the French Euronext exchange increased by 2.3% to €227.3 per ton for May delivery. Sizov regards this price change as significant, marking the largest daily increase since November of the previous year, suggesting that demand from Turkey might rise.
Data from Rusagrotrans reveals that in the first half of this season (July 2024 to January 2025), Turkey has fallen to third place in terms of Russian wheat purchases due to the new restrictions, having previously ranked first and second. Year-on-year wheat shipments to Turkey have decreased by 1.9 times to 2.28 million tons, the lowest volume since the 2016/17 season.
Analysts from Rusagrotrans report that during this timeframe, Russia’s wheat exports rose by 0.4 million tons, reaching a total of 32.2 million tons. Egypt leads in wheat purchases, having boosted its imports by 1.7 times compared to the previous year, totaling 6.3 million tons. Following closely is Bangladesh, which imported 2.28 million tons, down from 2.49 million tons the season before.
Andrei Sizov expresses skepticism regarding the impact of lifting restrictions on Russian wheat exports in the near future. He notes that Russia is currently subject to an export quota of 10.6 million tons for wheat, applicable from February 15 to June 15. Moreover, Sizov indicates that a considerable quantity of wheat deliveries was previously stored in customs warehouses in Turkey, and now these amounts will be directed to the domestic market.