Turkey’s New Food Law Targets Hals as Prices Surge

Turkey is preparing to introduce one of its most comprehensive regulatory changes in the fresh fruit and vegetable market in years. A new Food Market (Hal) Law, designed to curb extreme price volatility and tackle long-standing supply chain inefficiencies, is expected to be submitted to Parliament at the start of the new year. The draft law aims to reduce intermediaries, tighten oversight, and encourage direct purchasing between retailers and producers, marking a significant structural shift in how fresh food reaches consumers.

The proposed legislation comes at a time when fluctuations in fruit and vegetable prices have become a major contributor to inflation. Policymakers believe that reducing the layers of intermediaries and addressing tax-related irregularities will help close the persistent gap between producer prices and retail prices.

According to Yeni Şafak, the draft contains four primary intervention areas that directly target points in the supply chain where unregulated activities and excessive margins are believed to distort prices.

Chain Markets to Buy at Least 20% Directly From Producers

One of the most consequential elements of the law is a new mandatory purchasing requirement for large chain markets. Under the draft, major retail chains will be obligated to source at least 20% of their fruit and vegetable products directly from producers.

This move is intended to reduce reliance on wholesale intermediaries, increase transparency, and strengthen competition by shortening the supply chain. By requiring supermarkets to purchase a minimum share of produce directly from growers, policymakers aim to reduce the layers of markup that inflate consumer prices. Over time, the requirement could expand beyond the initial 20% threshold if the system proves effective.

Market analysts note that this change could reshape procurement strategies in the retail sector, forcing major chains to build new logistics systems, expand relationships with producer cooperatives, and invest in quality control capacities at the farm level.

Stronger Controls to Stop Informal Trade and Tax Evasion

A central goal of the draft law is combating unregistered transactions and tax evasion, issues widely viewed as major contributors to unpredictable price swings in fresh produce. The legislation introduces several mechanisms intended to deter non-compliant behavior and strengthen overall market integrity.

Key measures include:

• Mandatory Authorization Certificates: Any trader operating outside an official wholesale market area must obtain a formal authorization certificate.
  Sanctions for Tax Manipulation: Traders who are found to be underreporting tax liabilities or misrepresenting market dues (rüsum) will have their authorization certificates suspended.
  Commission Restrictions: Sales between commission agents within wholesale markets will be prohibited entirely to prevent internal price manipulation and excessive markups.

These reforms are expected to reduce opportunities for inflated pricing, remove loopholes that allow informal middlemen to operate, and improve the reliability of pricing data used for market monitoring.

Greater Support and Space for Producer Organizations

Another major component of the new law focuses on empowering producers themselves. Recognizing the role producer organizations can play in reducing supply chain inefficiencies, the draft includes several incentives.

These include:

• Reserved Market Space: Producer organizations will be allocated 25% of available space in wholesale markets, enabling them to participate more actively in distribution and pricing.
• Free Land Allocation: When producer organizations apply to establish new wholesale markets, they can access free state land, a measure intended to strengthen localized food networks and reduce logistical bottlenecks.

Experts suggest that these policies could enhance producers’ bargaining power, create more stable supply channels, and help keep retail prices closer to production costs. Supporting producer cooperatives is also expected to encourage long-term investment in storage, transportation, and digital tracking systems.