Agriculture Turkey imposes 130% tariff on some grain imports By Reuters April 26, 2023 Reuters/Mohamed Abd El Ghany Talks between Egypt and the UAE over the loan deal to purchase wheat from Kazakhstan are in early stages Turkey imposed a 130 percent import tariff of some grain imports including wheat and corn, according to a presidential decision published in the official gazette. The import duty comes after some European Union countries announced bans on grain imports from Ukraine last week. But some traders said Turkey’s move is largely to protect its local agricultural sectors ahead of landmark May 14 elections. According to a previous regulation, there was no import tax on wheat, barley, rye, oat, corn and sorghum until April 30. With the latest decision, which will take effect from May 1, a 130 percent import tariff will be imposed for grain imports. Turkey’s wheat and barley harvest starts in May. Turkey had reduced import duties on grains and other agricultural goods after the pandemic in late 2020 and stopped them about a year ago. The government recently announced large energy and infrastructure projects in the run up to the election, which opinion polls show President Tayyip Erdogan could lose after two decades in power. Inflation in Turkey will dip to 46.4 percent by end-2023, a Reuters poll showed, while the policy rate is seen rising to 24 percent next quarter. The country’s consumer price index surged in the wake of a currency crisis sparked by an unorthodox easing cycle in late 2021. Interest rate cuts were part of Erdogan’s policy of prioritising growth, investment and low borrowing costs. The inflation surge, to above 85 percent last year, hit Erdogan’s popularity and polls show him trailing his main challenger. Economists expect a move towards more orthodox policies after the election.
