by PressTurkey extended duty-free imports for grains
Duty-free imports for grains in Turkey will be in effect until April
The Turkish government has decided to extend the duty-free imports, which applies to crops. It is reported that the preferential treatment will be valid until April this year inclusive. Duty free supplies of wheat, corn, as well as barley.
In the last month of 2020, Turkey bought about 214 thousand tons of Black Sea wheat and 192 thousand tons of Baltic wheat. Analysts predict an increase in supplies this year, it is reported that in January the country has already purchased 400 thousand tons of grain. In 2020, Turkey has been actively buying products on the world market in order to stabilize the domestic market and support the local milling industry. This year, the country will continue to replenish wheat stocks, as well as to meet the growing demand for corn and barley.
The Turkish government first decided to abolish duties on grain imports in October 2020 and until the end of the year. Prior to that, there were tariffs of 45% on wheat, 35% on barley and 25% on corn. The authorities explained their decision by their intention to exclude the increase in the cost of cereals and products made of them on the domestic market. It should be noted that the price of wheat and other crops is increasing in the global market. The reason for this was the pandemic and its consequences, as a result of which the major importing countries began to actively buy grain after a fall in demand. Another negative factor influencing the pricing was the drought that was observed last year in Europe and other regions.
Grain imports in other countries: Bangladesh
Analyzing the situation on the world market, many countries have reconsidered their position regarding grains and decided to increase imports. Climate conditions also spurred such actions — meteorologists predict a continuation of the dry season, which will reduce the harvest and its quality. Following Turkey, Bangladesh also decided to increase the purchase of wheat. Russia used to be the country’s main supplier, but the latter recently raised export duties, which forced the Bangladesh government to look for other importers. It chose Ukraine, which has been exporting high quality wheat to various countries for a long time. In this way, Bangladesh authorities plan to cut off the shrinking supply from Russia, which will most likely happen in March this year when new export duties come into effect.
According to the initial agreement between Bangladesh and Russia, the latter is to supply 400 thousand tons of grain until June 2021. Now the country has imported 200 thousand tons, and experts doubt that Russia will have time to send the remaining volume to Bangladesh before the agreement is terminated.