Türkiye’s grain market is experiencing a significant surge in prices, driven by ongoing economic challenges. The prices of key staples like wheat, barley, and corn have all seen substantial increases, reflecting the broader economic turmoil marked by high inflation and a volatile exchange rate. Let’s take a closer look at the current situation and what it means for the future.

Grain Market on the Rise: A Closer Look

In recent weeks, the grain market in Türkiye has been steadily rising. Last week, the price of bread wheat closed at 9,000 TL (€238) per ton, while durum wheat reached 10,000 TL (€265) per ton. Barley was trading at 7,200 TL (€190) per ton, and corn was sold at 8,200 TL (€217) per ton. These price hikes are part of a broader trend that has seen the grain market maintain its upward trajectory, despite short-term fluctuations.

Current Market Status: Wheat, Barley, and Corn

The ongoing economic issues in Türkiye have led to significant increases in the prices of wheat, barley, and corn in the open market. Over the past week alone, bread wheat prices rose by 100 TL (€2.65) per ton, durum wheat by 400 TL (€10.59), barley by 100 TL (€2.65), and corn by 300 TL (€7.94). This trend has continued throughout August, with notable price increases across various grains:

• Bread Wheat: 8,910 TL (€236) per ton
• Durum Wheat: 9,512 TL (€252) per ton
• Barley: 7,180 TL (€190) per ton
• Corn: 7,926 TL (€210) per ton
• Oats: 5,965 TL (€158) per ton
• Rye: 7,313 TL (€193) per ton

New Agricultural Support System Announced for 2025-2027

In a significant development, the Turkish government has announced new agricultural support measures for the 2025-2027 period, as published in the Official Gazette. The decision, signed by President Recep Tayyip Erdoğan, marks a major shift in the country’s agricultural policy. From 2025, the government will eliminate subsidies for fertilizer, diesel, and price support (premium) payments for 17 key crops.

Minister of Agriculture's Statement on the New Policy

Minister of Agriculture and Forestry, İbrahim Yumaklı, announced the new policy via social media, stating that the changes aim to encourage planned production and curb unplanned farming practices. The new support system will introduce a base support of 244 TL (€6.46) per decare, with additional multipliers for planned production and product development, potentially increasing the total support available to farmers.

Industry Reactions: Concerns Over Support Withdrawal

Following the announcement, agricultural journalist Ali Ekber Yıldırım expressed concerns over the removal of diesel, fertilizer, and premium support. He highlighted that farmers will receive these subsidies for the last time in 2024, after which the new system will take effect. The withdrawal of these supports has sparked debate within the agricultural community, with many questioning the impact on farmers' livelihoods and the broader agricultural sector.

A Pivotal Moment for Türkiye’s Agriculture

As Türkiye navigates these economic challenges, the grain market’s response highlights the fragility and importance of strategic agricultural policies. The recent price hikes in wheat, barley, and corn, coupled with the significant policy changes set for 2025, indicate a pivotal moment for Turkish agriculture. Stakeholders will need to closely monitor these developments as they unfold, with potential implications for both domestic markets and international trade.