Source: APKinform (Ukraine)
The Turkish government is reportedly set to implement a new import quota for corn with lower tariff rates by mid-March or early April, according to S&P Global, which cited sources from the market.
Consequently, importers in Turkey are hurrying to arrange for corn shipments to reach the country before the deadline, in order to take advantage of the lowered tariff quota.
A Ukrainian trader mentioned in the report, “If shipments are delayed, you might miss out on the reduced duty because the quota works on a ‘first come, first served’ basis.”
Turkish market sources have observed that the current high demand for corn at this time of year is atypical for the nation. They also indicated that warehouses are nearing capacity with imported corn in anticipation of the forthcoming official import quota.
One Turkish importer stated, “Importers are holding off on selling and waiting for the quota. However, there’s already an excess of corn in storage, with more on the way. Following the quota’s implementation, they will aim to sell simultaneously, and those offering the best prices before the quota will emerge victorious in this competition.”
Nonetheless, market insiders suggest that the new corn import quota will likely be enacted only if local corn prices rise beyond 10,500 Turkish liras ($288) per ton. Currently, prices hover around 9,700-9,800 liras per ton, but an increase is anticipated in April as Ramadan comes to a close.
Traders have noted a surge in corn imports from Ukraine to Turkey this month due to heightened demand and expectations surrounding the quota. Approximately 241,000 tons of corn were shipped to Turkey from Ukrainian ports between February 1 and 18, making Turkey the primary destination for Ukrainian corn.
It is worth noting that last October, to stabilize domestic corn prices, the Turkish government slashed the import tariff from 130% to 5% for 1 million tonnes of corn, after which tariffs returned to their previous levels.