Increase in flour, bread and pasta

The increase in flour prices after the announcement of wheat purchase prices will bring further rises in bread and pasta prices.

President Tayyip Erdoğan announced a price of TL 8,250 per ton for bread wheat and said that the farmer would receive support of TL 1,000 per ton.

While the officials from the Istanbul Chamber of Commerce (ITO) and the Istanbul Chamber of Bakers, whom we spoke to, said that after this development, the bag of flour increased by 100 TL in one day, and 50 kilograms of flour sold from 490 TL increased to 595 TL; It is stated that this will also be reflected in the price of flour in the market in the coming days.

Bakers affiliated with the ITO and the Chamber of Craftsmen began working for a 33-40 percent increase in bread sold in Istanbul.

At the moment there is no official demand for an increase in bread, but the bakers, who will present their demand for a new increase to the corresponding assemblies and to the chamber of commerce, no later than mid-July, will offer 200 grams of bread for 5 TL at 7 TL, and 240 grams of bread from 6 TL to 8 TL He will ask you to come out.

TRANSPORTATION EXPENSES INCREASED AFTER RECORD IN DOLLAR

Bakers say they were unable to access subsidized flour granted by the Turkish Grain Board (TMO) from June, in addition to the 100-lira increase per sack of flour a day after wheat prices were announced.

However, not only the increase in flour prices, but also the increase in transportation costs due to the increase in the dollar exchange rate and the increase in labor costs due to the minimum wage that is expected to increase in July , will be effective in the demand for bread walk.

15 PERCENT HIGH IN PASTA IS ON THE WAY

According to the information provided by the pasta manufacturers, the increase in wheat purchase prices generated a 15 percent increase in industrial expenses.

In statements to Sozcu.com.tr, the general manager of a nationwide pasta company stated that the increase in the minimum wage will be added to the increase in energy, transportation and packaging costs depending on the dollar, and that to this increase in the costs of the The industrialist will increase the prices of pasta by 15 percent within 1 to 2 months, he said that the increase will increase and this increase will be reflected gradually.

Therefore, the price of a package of pasta starting at 12 TL throughout the country will increase to 13.8 TL.

‘THE COST IS BELOW, WILL TRIGGER FOOD INFLATION’

On the other hand, although the announced wheat purchase prices created an increase in industrialists’ expenses, they did not satisfy farmers who produce wheat in the field with great difficulty, the announced price was below cost, and it is expected that this will increase food inflation by decreasing production next year.

Baki Remzi Suiçmez, President of the TMMOB Chamber of Agricultural Engineers (ZMO), who provided information to sozcu.com.tr on the subject, said: “In an environment where the dollar rose from 20 TL to 23 and maybe it stabilized at 25 in the next few weeks the price of wheat is the same, the day has gone behind,” he said.

“If the inflation announced today by TUIK is 39.5 percent, the input price index is 49.7 percent and the Agricultural PPI is 71 percent, the rise in wheat remains at 24 percent. This is not an acceptable increase. It makes the farmer move away from the wheat crop. We demand that it be revised upwards as soon as possible.”

Suiçmez said: “The reason why the purchase price of wheat is left for after the elections is that these low prices are hidden from the producers before the elections” and continued as follows:

“The wheat purchase price announced last year was relatively better. This year’s production is said to have increased as well. According to TUIK’s first estimate, wheat production will be 20.5 million tons. However, after wheat purchase prices were announced this year, the farmer will switch to other wheat products next year. This paves the way for the wrong environment to rejoice in even 20 million tons, which is not enough for domestic consumption.

This situation has become a vicious circle and is inevitably dependent on food prices.

In other words, although the Turkish Grain Board (TMO) suppresses the wheat that it gives to industrialists, the increase in bread is on the agenda. All inputs like the price of wheat, yeast, labor, electricity, and natural gas are effective in this. The fact that the farmer gives up planting wheat next year means that there will be wheat shortages again, high food prices and high bread prices.”