Chamber of Agricultural Engineers President: High food inflation will continue

Chamber of Agricultural Engineers (ZMO) President Remzi Suiçmez evaluated the increase in agricultural input prices reflected in the data from the Turkish Statistical Institute (TÜİK).

According to the report in Birgün, the subgroup with the highest annual change in the agricultural input price index is veterinary expenses at 165.31 percent. The subgroup with the highest monthly change was seeds and planting materials at 7.04 percent. This situation stems from factors such as diseases in the livestock sector and rising feed prices. The agricultural input price index has been continuously increasing for the last 6 months.

In agricultural input prices, there was an increase of 1.16 percent compared to the previous month, 12.67 percent compared to December of the previous year, 49.93 percent compared to the same month of the previous year, and 37.50 percent according to twelve-month averages. Compared to the same month of the previous year, there was an increase of 46.74 percent in the index of goods and services used in agriculture, and an increase of 72.55 percent in the index of goods and services contributing to agricultural investment.

COSTS ARE RISING DUE TO IMPORTS

Evaluating the data, Chamber of Agricultural Engineers (ZMO) President Remzi Suiçmez said, “When you look at it now, inputs are on an upward trend. 49.9 percent is a very high rate of increase. Since it is the planting season, the input prices for seeds and planting materials have increased more. Because we are dependent on foreign sources for diesel, seeds, fertilizer, and feed, costs are constantly rising because they are continuously imported, even if the exchange rate is suppressed.” Stating that as a result of the constant increase in inputs at this rate, producers are either buying fewer products or not planting their fields, Suiçmez added, “The public sector should not leave small producers alone with merchants and chain markets. The Turkish Grain Board (TMO) should regulate the market by making sufficient purchases. It is necessary to ensure that farmers can continue production by making a profit.”

"SCT SHOULD BE REMOVED AND VAT REDUCED ON DIESEL"

Suiçmez expressed the following:

“In an environment where input prices continue to rise, production costs will continue to rise if we do not provide sufficient support. As a result, consumer prices will increase and continue to be reflected as high food inflation. Policies dependent on foreign sources for diesel, seeds, fertilizer, and feed should be reduced. The Special Consumption Tax (SCT) on diesel should be removed and the VAT should be reduced. At the same time, support should be provided before planting so that the farmer can see the road ahead. Purchase prices should be announced above the cost. These are concrete steps that need to be taken. If they are not taken, we may be forced to buy not only production inputs but also basic products from abroad. There is no other solution than reducing production costs.”

News Source: 12punto