Source: Zerno.ru (Russia)
As Bloomberg reports, Turkey plans to continue restricting wheat imports even after the four-month import ban ends this month.
After October 15, the market will only be partially opened through a quota system, the Turkish Flour Producers Association said in a letter to flour mills. The association had received an instruction from Turkish officials.
Turkey, normally one of the world’s biggest wheat buyers, imposed the temporary ban in June to protect local producers from falling prices during the harvest.
According to traders, the measures outlined in the letter mean that mills will only be allowed to import 15 tons of wheat for every 85 tons they buy from the Turkish Grain Association. While traders expect the measures to be implemented as outlined in the document, they are not binding and adjustments may still be made before an official announcement is made.
The association declined to comment on the letter, which did not indicate how long the new measures would apply. Turkey’s trade and agriculture ministries said they were working on the matter but gave no further details to Bloomberg.
The new system is designed to help Turkey reduce its stockpiles, which are at their highest level in nearly 30 years.
Russia and Ukraine are the two largest wheat exporters in the world. Turkey has a large pasta and flour industry, which usually relies on grain from abroad to supplement domestic wheat. After 2022, the country began importing large quantities of wheat for fear of supply shortages.
However, flour mills, which export a large proportion of their flour and pasta products, are pushing for the ban to be lifted as it makes them less competitive with other countries. The ban forces them to buy wheat from local farmers instead of importing cheaper grain. According to Turkish flour milling company Ulusoy Un, flour exports from Turkey fell by 41 percent year-on-year in August and were also down by more than 30 percent in June and July.