Turkey Reduces Wheat Imports as Domestic Stocks Remain High

The USDA’s Foreign Agricultural Service forecasted a decline in Turkey’s wheat, barley, and corn production for the 2024/25 season due to dry weather. Despite this, Turkey holds substantial wheat and barley stocks from the previous year, prompting government measures to manage the surplus. Authorities also introduced a program encouraging farmers to grow water-efficient crops in drought-prone regions to address water shortages.

Wheat Imports Drop by Over 40 Percent

During June to November 2024, Turkey’s wheat imports fell by 40 percent compared to the previous year, totaling 1.9 million tonnes. The decline followed the government’s temporary suspension of the inward processing regime (IPR) from late June to mid-October. However, imports are expected to recover in the second half of the season, reaching 5.5 million tonnes, with Russia as the primary supplier.

After lifting the IPR suspension in mid-October, the Turkish Grain Board required mills to buy 85 percent of their wheat from domestic reserves, allowing only 15 percent to be imported under the IPR. In January 2025, the government revised the ratio to 75 percent domestic wheat and 25 percent imported wheat. Market experts expect these rules to remain in place until the next harvest in May. Turkey applies a 130 percent tariff on wheat imports under the IPR.

Flour exporters advocate increasing import quotas, requesting permission to buy at least 50 percent of their wheat needs through the IPR. Imported wheat costs significantly less than domestic wheat, giving exporters a competitive edge. Currently, Russian wheat trades 70 dollars per tonne lower than Turkish wheat, which sells for 310 dollars per tonne.

Barley Imports Decline Due to High Stock Levels

Turkey expects to import 130 thousand tonnes of barley in the 2024/25 season, a decrease caused by high carry-over stockpiles. Between June and November, barley imports dropped 7 percent year-on-year, reaching 77 thousand tonnes. Russia supplied 40 thousand tonnes, while Ukraine contributed 36 thousand tonnes during this period.

Conclusion: Turkey Balances Domestic Supply and Trade Policies

Turkey continues adjusting its import policies to manage stockpiles while ensuring competitiveness in global markets. The government’s regulatory measures reduced wheat imports, while high barley reserves lowered demand for new shipments. Flour exporters seek greater access to imported wheat to maintain competitive pricing. Future trends will depend on government decisions, climate conditions, and global trade shifts.





Click here to reach our trading platfrom CMBroker