Producer inflation in agriculture climbs to a new high in Turkey

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The Turkish Statistical Institute (TurkStat), the state agency responsible for producing official statistics on Turkey, has released the Producer Price Index (PPI) of Agricultural Products for January 2022.

According to the TurkStat, while the PPI of Agricultural Products increased by 14.83 percent in a month, it increased by 52 percent in a year and by 26.55 percent on the basis of 12 months moving averages.

Compared to the previous month in sectors; fishing products and other fishing products increased by 8.19 percent, products of agriculture, hunting and related services increased by 14.96 percent and forestry products and related services increased by 16.20 percent.

Regarding monthly changes by main groups; live animals and animal products increased by 13.42 percent, non-perennial crops increased by 15.34 percent and perennial crops increased by 16.64 percent.

High annual increases in fiber plants

In January 2022, fiber plants with 147.56 percent, cereals (except rice), leguminous crops and oil seeds with 69.20 percent and vegetables and melons, roots and tubers with 64.34 percent were the subgroups where high annual increases were witnessed.

Citrus fruit with 14.81 percent and rice (in husk) with 22.88 percent were the subgroups that saw the lowest annual increase.

High monthly increases in vegetables

Vegetables and melons, roots and tubers with 37.47 percent and fiber plants with 17.69 percent were the subgroups that saw high monthly increases last month. Cereals (except rice), leguminous crops and oil seeds with 1.68 percent and rice (in husk) with 3.74 percent were the subgroups that witnessed the lowest monthly increase, according to the TurkStat.

Other tree and bush fruits and nuts with 0.52 percent and oleaginous fruits with 0.32 percent saw monthly decreases.

Statement by CHP's Sarıbal

Main opposition Republican People's Party (CHP) Bursa MP and Party Assembly member Orhan Sarıbal held a press conference at the Parliament and raised concerns that the increase in the Producer Price Index of Agricultural Products will mean food inflation for citizens.

Underlining that farmers cannot earn money despite this increase and are crushed under the burden of debt, Sarıbal said:

"Due to the extreme increase in input costs, farmers cannot earn money from what they produce. And consumers have to buy food expensively. Both farmers and consumers are aggrieved by the wrong policies."

Recalling that the Producer Price Index (PPI) of Agricultural Products has been on an upward trend in Turkey for the past 21 months, Sarıbal stressed that with the recently announced data, Turkey has seen the highest PPI of the past 10 years on both annual and monthly basis.

Sharing information about the increasing input costs of farmers, Sarıbal said, "The price of fertilizer has increased by 300-500 percent, that of animal feed has increased by 100 percent, diesel fuel by 115 percent, agricultural electricity by 121 percent, seeds by 50-300 percent, pesticides by 100-300 percent in the last year. When the other inputs are added to this, it is impossible for farmers to produce cheaply considering these costs."

The MP stressed that as farmers are unable to produce cheaply, it is impossible for food prices to drop. He called on the authorities to relieve farmers of the burden of taxes on inputs and give them grants. (TP/SD)