The Turkish Grain Board (TMO) will continue to sell subsidized flour to bakeries in June in order to prevent the excessive increases in bread prices. The regulation by the Office had been planned to end as of May 31.
The Ministry of Agriculture and Forestry announced that it has been decided to extend the flour regulation practices of the Turkish Grain Board (TMO) throughout June. The statement made by the Ministry on its official social media account is as follows:
“Our Ministry, through its related institution Turkish Grain Board (TMO), has taken the necessary measures immediately after the drought experienced in the 2021 harvest season, and has conducted its studies to eliminate the supply deficit in the market for the products within its field of activity.
Within this scope, with the Flour Regulation Study in operation since September 2021, the bread wheat in the TMO inventories was sold in return for a commitment to keep the flour prices at a reasonable level, thus ensuring that the flour, which is the raw material of bread, reaches our bakers at affordable prices.
In 2022, our national wheat production is forecasted at 19.5 million tons, 10.5% higher than of last year, and the total grain production is at 36.9 million tons, 15.7% higher than of last year.
Wheat and barley harvest has started locally and it is seen that the yield is higher than the previous year in the harvested areas.
However, at this point, some speculations are observed claiming that excessive price increases are expected in market flour prices for the June-August period when wheat is harvested.
In order to prevent these speculations from negatively affecting our consumers, necessary assessments have been made by the Ministry of Treasury and Finance and the Ministry of Agriculture and Forestry, and it was deemed appropriate to prolong the Flour Regulation practices of TMO throughout June.
In this context, the Turkish Grain Board will continue to sell bread wheat at affordable prices to flour mills that undertake to sell flour to bakeries and bread producers at a certain price.
The markets will continue to be closely monitored in the upcoming period as it has been up to now, and all necessary measures will be taken for market stability.”