Price stability in vegetables and fruits to be ensured with new wholesale market law

The draft of the Wholesale Market Law, preparations for which are nearing completion, is on the agenda as a solution to sudden fluctuations in vegetable and fruit prices and high inflation. With the law expected to be discussed in Parliament at the beginning of the new year, the goal is to facilitate access from producers directly to consumers by reducing the number of intermediaries in the supply chain. Furthermore, the law plans to prevent informal activities in the sector.

With four fundamental regulations that will directly intervene in the problems causing price increases in vegetables and fruits, the aim is to narrow the price gap between the consumer and the producer.

NEW OBLIGATION FOR CHAIN SUPERMARKETS

One of the prominent articles of the draft is the new procurement requirement to be imposed on chain supermarkets. Accordingly, large supermarket chains will be required to purchase at least 20 percent of their fruit and vegetable products directly from producers. Thanks to this step, a decrease in the number of wholesalers and brokers, an increase in market competition, and more stable price trends are expected.

The law aims to shorten indirect supply chains by making it mandatory for chain supermarkets to make direct purchases, and to lower the costs incurred until products reach the consumer.

STRICT OVERSIGHT FOR INFORMALITY

Another important goal of the new draft law is to combat informal trade. Merchants who want to sell outside the wholesale market will be required to obtain an authorization certificate. Additionally, the authorization certificates of merchants determined to be evading taxes by underreporting duty fees will be suspended.

Sales between brokers within the wholesale market are being completely banned. In this way, it is aimed to prevent the artificial inflation of prices and to increase transparency in the market. Officials state that with these measures, it will be possible to offer products to consumers at affordable prices and for producers to reach the income they deserve.

PRODUCER ORGANIZATIONS TO BE SUPPORTED

The law also envisions various incentives for producers to play a more effective role in the system. It is planned to allocate 25 percent of space to producer organizations in newly established wholesale markets. Furthermore, the state may allocate land free of charge to these organizations when they wish to build a new wholesale market. Thus, it will be easier for producers to gain power in the market, for the organized structure to strengthen, and for products to be delivered directly to the consumer.

With the entry into force of the new regulation, both the welfare of the producer will increase and consumers will be able to access fresh products at more affordable prices. The Wholesale Market Law, which is expected to come to the Parliament's agenda at the beginning of the year, seems set to bring about radical changes in the food market.

News Source: 12punto