20 cents per kg deduction was being applied: Fund deduction on olive oil exports has been lifted

The Presidential Decree on the Amendment of the Decree on the Support and Price Stabilization Fund has been published in the Official Gazette and entered into force. According to information obtained from the Ministry of Trade, bulk and barrel olive oil exports are closely monitored regarding factors such as domestic consumer prices, seasonal developments, and supply and stock status, and periodic measures are applied to the export of the product in question.

In this context, during the 2022/2023 season, when olive oil production worldwide, particularly in Spain and Italy, decreased by 20 percent due to drought in Europe, while Turkey's production increased by 62 percent, Presidential Decree No. 7391 was enacted to regulate a 20-cent deduction per kilogram on all types of bulk and barrel olive oil exports, with the aim of directing exports toward packaged olive oil and contributing to the export of value-added products.

COMPETITIVE SUPPORT FOR EXPORTERS

The Ministry of Trade closely monitors the olive oil market, including foreign trade, domestic supply, procurement, and international and domestic prices, in coordination with relevant official and sectoral organizations, primarily the Ministry of Agriculture and Forestry, as well as current developments in Turkey and the world. When examining the world and Turkish olive oil markets in the current 2023/24 season, it is projected that the season will conclude with a higher-than-expected harvest in traditional exporting countries, including Turkey, compared to the 2022/23 season, and that the same upward trend will continue in the 2024/25 season.

For this reason, it has been decided to lift the deduction applied to bulk and barrel olive oil exports to ensure that exporters can adapt to competitive seasonal conditions, maintain existing export markets, and facilitate integration into new markets.

News Source: 12punto