A presidential decree published in the Official Gazette paved the way for the import of 400,000 tons of sugar at a time when the price of sugar on the domestic market is rising.
The decree stipulates that no customs duties will be levied on the 400,000 tons of sugar to be imported and that the import licenses, which will be granted under the new decision, will be valid until October 15, 2022.
Import quotas will also be allocated to companies that use sugar in their products.
The price of sugar is around $560 a ton, but in Turkey its price has soared to $1,200 a ton, officials said, adding that speculative moves and strong demand are playing a part in the price spike. .
Officials from the Ministry of Agriculture and Forestry said companies that use sugar in their products would be given import quotas to stabilize the market and prevent speculation.
They noted that some 200,000 tons of sugar are consumed per month in Turkey, while annual consumption is around 2.45 million tons.
Normally, between January and May, 1.45 million tons of sugar are sold in the local market, but sales exceeded 2 million tons this year, officials said.
“The main reason for the recent increase in the price of sugar is demand. Producers and consumers are stockpiling sugar because they fear prices will rise further. Producers currently have 400,000 tonnes of sugar, but everyone wants to buy sugar from [the state-owned] TürkŞeker because its price is half the market price,” they said.
The price of sugar should have been between 14,000 lira and 15,000 lira per ton, but it currently stands at 20,000 lira, according to Hüseyin Akay, the head of the cooperative of sugar beet growers in Kayseri.
“The cost of imported sugar will be around $750 a ton,” he said.