Turkey Targets Food Prices with New Wholesale Market Reform

In a move to stabilize fruit and vegetable prices, the Turkish government is preparing a comprehensive reform of the wholesale market law, aiming to reduce intermediary costs, curb speculation, and increase producer revenues. The new draft regulation from the Ministry of Trade introduces a series of bold changes to the way agricultural trade is conducted across the country.

At the heart of the reform is direct access for producers to markets and a clampdown on stockpiling and artificial price inflation. Under the draft law, producer cooperatives will be allocated market space free of charge, given 75% rental discounts, and exempted from income tax to incentivize participation. These measures are designed to empower small producers and open up larger distribution channels, reducing reliance on intermediaries.

Retail chains will also be drawn into the new system. Supermarkets will be legally required to purchase at least 20% of their fruit and vegetable stock directly from producers. Failure to comply could result in fines of up to 50 million Turkish liras. This rule aims to create a shorter supply chain, bringing consumers closer to the source while improving farmer earnings.

To combat price manipulation and hoarding, the regulation introduces strict penalties:

• 1 million TL fines for those found artificially inflating prices or hoarding products.

• 200,000 TL fines for destroying unsold or spoiled goods instead of redistributing or recycling.

A key structural change in the bill involves transferring the authority to authorize new wholesale markets from municipalities to the Ministry of Trade. The aim is to modernize infrastructure and prevent the creation of poorly planned or under-equipped markets by establishing state-supervised logistics hubs.

One of the most significant updates is the expansion of the collateral system. Currently used to compensate producers when goods are unpaid or spoiled, the revised guarantee scheme will now also include traders operating outside of official markets. In addition, non-producer creditors will be allowed to claim their rights through deductions from these collateral funds.

This comprehensive draft law is part of a broader government effort to rein in volatile food prices, reduce waste, and establish transparent, efficient agricultural trade networks that benefit both producers and consumers.

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