Turkey takes measures to stabilize prices of wheat flour

18/09/2018,

On 6 September, the Government introduced a limit on exports of wheat flour made from domestically-produced grain to 1 percent of total exports. No limits were placed on wheat flour exports under the "Inward Processing Regime" duty exemption mechanism, which allows exports of wheat products from imported grain. The country is one of the leading exporters of wheat flour in the world. Iraq, the Sudan and the Syrian Arab Republic account for over 60 percent of the country’s total exports of wheat products. The measure aims to stabilize the high domestic prices of wheat flour and protect consumers, and it was imposed on a temporary basis only. Prices of wheat flour increased sharply after the significant depreciation of the national currency against the US dollar from late July, which increased the country’s competitiveness in the international market, sustaining foreign demand and putting upward pressure on domestic prices. Higher prices of imported inputs and recent trends in the international wheat market also provided support. In a further effort to ease the upward pressure on prices of wheat flour, the Government began releasing stocks and announced duty-free imports until May 2019.

Country: Türkiye